It is the company's transition to services, they need volume sales to drive user base up.
They will not do these flash sales themselves so they use authorized sales partners like Amazon BestBuy, Walmart, etc. to do it.
And quite frankly I think it is working, $230 is a good price for the leading wearable device on the market... then this person is likely to bump up iCloud storage, subscribe to Music or to their fitness service, all triggered by owning the hardware.