I think Apple missed an opportunity with the watch by not offering some sort of upgrade or trade in program. They kept version 1 around but updated the processor which indicates they have the ability to swap that component out. I guess we'll have to wait for the tear downs to see if there are any other changes to the internal layout. It also indicates to me though that Apple knows the S1 chip wasn't all that great. So what do people who have a first gen watch but aren't really interested in swimming or running do? Fork out $269/$299 for an S2 chip? Why couldn't Apple allow gen 1 owners to either have the chip in their device replaced or if that's not possible let them swap out the watch part for a new watch part at a reduced price? As someone who isn't a runner and doesn't swim I really don't have a need for Series 2 but I definitely would like the better processor as I don't think software alone will make the watch as fast as it should be. This is a very confusing decision by Apple. How frequently do they sell last years model with updated CPU...maybe they've done it with Mac before but I don't think they ever have with iOS devices.