The mechanism itself isn't analog and I don't expect the sensor is either, using RPM or a wheel sensor rather than the old mechanical slip-gear scheme.
I saw the innards of a needle drive and it's just a simple 2-phase stepper motor with 3 gears so that each turn of the stepper motor is a small fraction of a mph. The speedometer could be as accurate as Smart wanted (or Johnson Controls) if so desired. The only limit would have to be the uncertainty of the wheel circumference.