More that they've jumped in to the technology wearable style fashion accessory market. Yeah, the aluminum and steel Apple Watches are in the "wearable technology" market - but look at where they're advertising and selling the gold versions - in high-end-fashion magazines and stores. The expensive Apple Watch is not about conventional watch collecting (as you also state,) nor is it about the wearable technology market; it is purely about the fashion accessory market.
Just look at the custom one-off versions they have given to fashion-conscious celebrities, including an all-gold-band version to a fashion icon - an all-gold band that is not available elsewhere.
I think the high end serves to get wearable technology onto the wrists of "the tastemakers". Make no mistakes, this platform is going to be as transformative as the smartphone was, but the cultural acceptance needs to be built up first. Hence, the Apple Watch V1.
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It's funny that it's 'servicing' if Apple changes the battery but it's 'tampering' if I do. I do all my own work after the warranty is up. Apple's repair pricing is outrageous.
I do my own repairs as well (I'm 2015 ACMT certified), but as far as pricing goes right now Apple's doing some damn good acts in terms of batteries.
$79 in the watch is not bad for consumers given few would dare to open the device up from technophobia.
But Apple's battery replacement for $179 in the MBP's and Airs is actually a phenomenal deal. For that price the entire topcase (Keyboard, Trackpad, and battery) get's replaced because of the glued in battery.
Now if we're talking Logic board pricing...that's still outrageous. Apple's battery pricing is pretty good though in my opinion.