To me, it seems like Apple may be struggling to keep people interested in the watch. At this point, many of the large developers have backed out of supporting it. Due to the relatively low cost, the majority of people who want one already have one, and there isn't much more they can do to add to it (because, lets face it, it's a watch haha).
Additionally, a lot of people I've talked to at work have been turned-off to it, due to the fact that it seems marketed mostly towards health and fitness. Obviously, this isn't a bad thing, but this doesn't appeal to everyone. My wife has one, but I do not.