I doubt it even covers the money they spent on advertising for the watch.
This is not even the first year! It's called "marginal cost of production". If you spend say 3bn designing and marketing the product and in year 1 you take in 1.5bn then in year 2 you double that, it starts to become really profitable. It's rare that any product like this anywhere will make it's costs and marketing budget back in the first year.