We are forgetting that Apple is not just selling a "new device."
This is the first time since the advent of the App Store that Apple has introduced a device with, a dedicated App Store... And this new device isn't similar to the addition of the iPad in the sense that most apps are simply ported, or enhanced upon the experience you could have on the iPhone. The user interaction is different, the expectations are different, and the psychology is different.
And we all know how ludicrously profitable the App Store is. When it went down a few weeks ago, Apple was loosing about $2 Million in app sales.
The device also creates a whole new advertising platform, both in app, but more interestingly in location based scenarios. Imagine you are at Target and they serve you up a coupon for something you want, and hit you with a tap on the wrist. You press a "Use" button and when you get to the cash register to use Apple Pay, there's a QR coupon for the cashier to scan. You may say something like this already exists on the phone, and no one uses it... But remember when people argued that a fingerprint reader was dumb and gimmicky? Now they sell more apps than ever because of the little bit of convenience they added.
This is much less about a new device, and much more about a new ecosystem.
TL : DR
The
Watch is more than just a watch. It's a new app store and ad platform.App sales + Ad revenue + Shiny object = Silly amounts of profit.
Hence all the hype.
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