Piggie: how much less, though? Let's say that the Sport cannot be upgraded, but the cost of an upgrade is $300 for the Watch (and possibly more for the Edition because it would come with additional service, who knows)? Anyway. It's enough that upgrading makes more sense than buying a Sport every couple years, but it's expensive enough that Apple could probably get a very high return. Plus, it would encourage more people to invest in buying the more expensive units, AND get them coming back on an annual or biennial basis for service (stickiness). Correct?
That's the goal: find the sweet spot where you have ridiculous margins on the chip and the cost of labor for servicing the device
without encouraging people to buy a whole new unit outright. Yes, a lot depends on how much Apple sells the Watch and Edition for, and how much the S-series SiP costs to develop and manufacture, but bringing up the "it's not in Apple's financial best interest" argument is bullocks at this point when we have no firm grasp of the financial breakdown of this product.
How many people buy $600 - $900 smartphones every year with countless cases, covers, and protectors?
As far as competing with traditional watch makers...Apple Watch isn't any more a watch than a TV on a wall is a painting. It's a computer capable of displaying the time which is not what buyers of traditional watches value. It's the thing itself, not a facsimile.
Yes, just how many people ACTUALLY buy a new phone, full price, every year? And how many people are on an installment plan that allows them to upgrade after 12 payments with no upfront payments? And how many are buying subsidized phones and only buying a new one when they can get an upgrade two years later? Do you have any hard numbers on that? Because if so, I'd love to see them. I'd love to see how the
average consumer behaves on this topic.
And excuse me, but Apple is very much competing with traditional watchmakers. Look at Apple's descriptions of the Watch. They are very much positioning it to compete with and relate to traditional watches because they're trying to hit that intersection between watches/jewelry and technology. Not once do they compare it to smartwatches, but nearly every description of the device relates back to horology, whether it's the materials they use, or calling it a precise timepiece, using nomenclature like complications, etc., etc.
You're confusing this being a competing device for the traditional watch market with the watch's target audience, which is
not people who actually buy luxury watches. They're targeting below that group, to the people who
aspire to own luxury timepieces without truly understanding why people buy luxury timepieces. But in order to do so they need to make enough comparisons to traditional watches to make people aspire to buy it, and particularly the high-end Edition model. That's why it's being presented to the world
as a watch and not just a computer.
And if Apple cannot replicate, to at least some degree, the quality of a timepiece in terms of longevity (i.e. that it is designed so well that it will work years after its initial purchase), I think that will be a major deterrent for people to adopt this on a massive scale. Because then it is just another consumer electronics device to be used for a couple years and replaced, and that runs counter the personal connection you're supposed to forge with Apple's "most personal device."