Back in March last year, luxury watch brand Tag Heuer unveiled the follow-up to its $1500 Connected smartwatch: The Connected Modular 45, a customizable wearable that lets users swap the smart module for a traditional, mechanical head. Now, the company has announced a smaller, upgraded version of the device.

Still developed alongside Intel and Google, the biggest change is the wearable's size. Like many smartwatches, the Connected Modular 45 is pretty large. Its 45mm diameter might feel a bit too chunky on some thinner wrists, especially for women, which is why the new Connected Modular 41 shrinks things down to, you guessed it, 41mm.

The stylish, smartwatch’s hardware gets an overhaul, too. Screen brightness is up to a maximum of 350 nits, and while the resolution is down from the 45’s 400 x 400, the 390 x 390 screen now offers 326 ppi. That’s an improvement over something like the Galaxy Gear S3 and its 360 x 360, 278 ppi, though Samsung’s device is a lot cheaper, admittedly. The smaller case also means the battery is down from 410mAh to 345mAh, but how much difference that will make during real-world usage is unclear.

The Connected Modular 45’s storage and memory are both doubled in this new version, up to 8GB and 1GB, respectively, meaning it should offer plenty of internal space and performance. There are also seven base options and a mixture of straps and lugs available to customize the Connected Modular 41 as you see fit.

As with the 45, Tag is pushing the Connected Modular 41’s ability to be both a smart and traditional watch, thanks to the interchangeable head unit, which can be swapped out for a Calibre 5 mechanical module. It’s also water-resistant to 50 meters, features GPS, and comes with an NFC sensor for contactless payment through Android Pay.

At $1200, prices for the Connected Modular 41 start slightly cheaper than its larger cousin. Those who want both a smart and traditional watch will have to fork out an extra $1650 for the Calibre 5 module. If you've got particularly deep pockets, you can pay up to $17,000 for the most expensive version of the wearable.

For a hybrid smartwatch at the other end of the price range, check out our hands-on with the MyKronoz ZeTime.