You know it's bad when Fossil makes up 5% of the market.
Yep.
People don't seem to pay attention to Apple's financial reports. Record income, soon to be the first trillion dollar company. "Aging flagship" products?? I assume you mean the iPhone, which is predicted to sell at a record level, again, as nearly a quarter billion people around the planet buy one in the next twelve months. Nobody knows how many watches are being sold, they are just WAG's from the analysts, but we do know that Apple has taken over the market in just two years, and according to TC, they are continuing to have large increases in sales.For some reason, people feel that the watch was meant to be a replacement for the profits of the iPhone which doomsayers believe to be in danger of plummeting despite the likely record sales again. No, the Apple Watch is just another growing profit center that brings in money while increasing the value of the overall Apple ecosystem. Just like iCloud, Apple Music, AirPods, and soon the Homepod.
Not sure how much attention you pay to Apples financial statements either honestly or how you've reached some of the conclusions you've jumped to on the back of them. You've got absolutely no idea if iCloud or Apple Music are profitable or not let alone if its a "growing profit center". Nor have you any idea if the Watch profits are growing.
Their "services" revenue is growing thats all you know for certain but id bet any money you like that the vast majority of that is coming from App Store commission obviously Apple is never going to share the breakdown (they never do unless its something worth crowing about) but it wouldn't surprise if it was several times more than Airpods, Apple Music and iCloud bring in combined. The Watch continues to be lumped in with "other" which tells you all you need to know.