If I had the money, I could imagine investing in an expensive watch, Rolex, Philippe Patek or whatever. But I would do so with the understanding that this was an heirloom, something I would itemize in my will and leave to my grandsonr. What I would NOT do is invest in a similarly-priced watch with the understanding that it would become obsolete within a very few years and replaced with an Apple Watch 2. I wonder if Apple really understands the fact that the purchase cycle for watches is fundamentally different from that of computing gear. I could possibly imagine myself picking up a low end Apple Watch just for grins, if I became convinced that it was useful enough to be worthy buy ing but I can easily see them flopping on the high end. Apple might sell a handful to the type of successful Hollywood type who owns and flies his own MIG-17. But does it make good economic sense to set up a production line for the benefit of such a small market?
I think your argument is the 1000th one that is EXACTLY the same, and yes, Ive, who seemingly owns 3 very expensive watches and led this project, knows about watches and its market.
Nobody gives a $350 or even $550 watch as an heirloom (you give your Iphone as an Heirloom?). This does more than tell time and be good looking; it is a major tech piece too. For the cheaper watches, most of the price is for the tech. Though, the steel bracelet for the mid range one will probably cost almost as much as the watch itself seemingly...
It is possible the high end watch will be partially updatable. But, it would probably easier for Apple to just swap and old gold watch for a new one for $1500 dollars every time you want to change (say every 2-3 years).