How do you place an altimeter inside an air-tight, waterproof watch? If they're using air pressure, I wouldn't be surprised if just pressing on the display caused your altitude to go down.
Also, if it calibrates from GPS, and then calculates deltas from air pressure, wouldn't going into/out of cold weather affect it?
Also, if it calibrates from GPS, and then calculates deltas from air pressure, wouldn't going into/out of cold weather affect it?