What Apple is getting wrong:
There is a significant market for cheap trendy disposable watches (<$100US), but this watch is not in that category.
I’ve been wearing an Omega Seamaster 300M for 16 years now. I’ve had it serviced regularly, and could sell it today for more than I paid for it plus its service costs. I didn’t really expect that when I bought it, so

. It wasn’t a cheap watch, but I knew I would wear it for at least decades and maybe a lifetime so it was worth it to me. So I’m a potential customer in this watch market - I haven’t worn a cheap (<$500) watch in over 20 years. My Seamaster cost >$1000 when I bought it.
I’d be interested in the Stainless with link bracelet, which I don’t expect to be cheap, but it better be:
1. Guts (battery, display, processor) upgradeable GUARANTEE - I’m NOT going to pay that much for a watch that WILL be obsolete in a few years. I would pay a few hundred bucks to upgrade the guts every few years. But I want AT LEAST a decade out of an expensive case/strap.
2. Reasonable battery replacement. Remember, advertised battery life is for new units. If you only get a day out of a new battery, you'll be getting less than a day within the first year.
3. Waterproof - I’m NOT expecting 300M (although I’m a SCUBA diver), but what’s the point of a Stainless sport watch if you cannot shower or swim with it? The main reason I wear a wristwatch at the gym is to maximize my time working out, so every second counts.
Smartphone obsolesce is not a valid comparison to the watch market because Smartphones are an entirely new (<10 years old) product. The cell phone market is really NOT that much older, especially when compared to the age of the watch market. People expect to buy a new cell phone every few years. It’s been that way since the beginning of the market. Wrist watches (which were just smaller (smart) pocket watches) were always an expensive purchase and expected to be a near lifetime “investment”. Cheap trendy disposable watches are only a recent market trend. Smart phones have been successful because their obsolesce cycle and cost have been mitigated by the carrier subsidies that build the phone cost into the service plan. No such mitigation applies to watches.
Apple seems to be addicted to product obsolesce (I can site several cases that I’ve experienced with their “high-end” products), which has worked to their advantage. But now they have to “think different” and break that addiction for the watch product to be successful.
And I doubt a $350 workout watch will be successful.