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This isn't surprising. Development for the watch is still heavily locked down. Once the Apple watch is opened up more and has a "system seller" I feel like sales will rebound.
"Once everyone has a smartphone, they are supposed to go out and get a smart watch, followed by smart eyeglasses, and so on. Or, at least, so goes the theory."

That sounds like a very ill gotten theory. Do companies really expect people to go out and by accessories that cost in the hundreds and add more stuff for people to hull around that do roughly the same things?

No, If I'm buying a smart device it's because either the cost is so cheap it's like buying extra USB cables or it's something to replace my other smart device.

History repeats itself and people start rattling off the basic litany of complaints.

It's a first generation device for Apple. The first iPhone had to be plugged into a computer. This watch is for early adopters, you know the 10-50 million people who'd shell out the money.

The watch's abilities will greatly improve over time, thus becoming more useful to another 500 million people.

500 million people who also won't want to pay $400-$600 for another smart gadget when they have already paid $600 for their iPhone.

At that price point, smart watches will remain a very niche market. Just as niche as $600 watches are today for consumers globally.

Android will end up dominating smart watches. They'll be made in China, and they'll cost $50-$99. That will drive adoption in the hundreds of millions globally.

Yes, we already know that Android will dominate wearables, as they do smartphones. Android simply sells cheaper options. It's a bit irrelevant though because Apple simply needs to cater to its current "small" market and remain highly profitable.

As for the size of the market, I'd expect almost everyone on the planet to want a wearable when you can use one to better monitor your health (heart, blood pressure, sleep, etc), use it as a credit card, remote for lights and garage door opener, key for house, etc.

7 billion people, 7 billion wearables.

Count me out. 7 billion minus 1. First I do not like watches, I have not used one for more than 15 years. Second I do not like single companies to try to steal more and more of our private information. So I do not like single company to monitor my health, my credit card nor my garage door. Pop.
How many people wear watches regularly now? After getting an iPhone I tended to stop wearing a watch.

It just seems like there may be very niche uses but most features are already on my phone so why bother? What would be the "killer" app that would generate more sales, assuming they open up the platform?

I wear a watch (Pebble) because I have an iPhone. The primary feature is my phone can be always on silent.
Just curious what use case this is? Is it that you want to see really important email/texts when you are involved in a setting where having your phone make noises is not preferred?
It's now preferred that my phone not make any noises at any time for any reason. Is there any situation where it would be preferable that your phone make noises?

Once you think of it like that, I think the use case is more clear. It's not about "important" notifications or calls -- it's about all of them.

I have a pebble. It's a lot less disruptive to glance at my watch when something happens than it is to get out the phone. With my phone in my pocket, I'm less likely to fidget with it. And yeah- with my watch vibrating, I can leave the phone on silent all the time. If I want to disconnect, I just take off the watch. It works really well for that.
Here's a killer feature for older people:

"I've fallen and I can't get up." "Hey Siri, call 911"

I've only had my watch for a day. I was going to get a Fitbit because I wanted more health features but I went with the Apple Watch because Apple is going to build a larger market in the next 2-3 years. HomeKit... Perhaps Apple TV integration, plus the app market...

I found the Apple Watch to be too expensive and it's the only reason I haven't bought one.

If it was around 299 for the non sport edition, I think I'd be sold.

If it was $299 for the non-sport edition, the watch market would implode.

Apple's doing a lot of companies a favour by keeping prices high enough for there to be room for competition.

Not surprised. Tried an Apple Watch (Sport) for a week or so before returning it for a refund. I just couldn't really work out what it was good for, apart from delivering notifications to my wrist. I also wasn't particularly impressed by the battery life, I think I'd need 2 days (for days where I didn't have the chance to charge it overnight) to feel confident using it.
To clarify, I'm not remotely an apple fanboy..but I dont think anybody excepted to continue 20k watches/week. They have sold a lot. The initial sales are done and thats fine.

Apple has a way with new versions of selling a lot all over again.

this doesn't come as a surprise to me. they are over priced, have to be charged too often and do too little to improve the users life.
"They are over priced"

People have been saying this about Apple products since the Apple II. But hey, thanks for that observation.

i think the sell through rate is proof of this. when the price is pegged to demand correctly, things sell out, rather then sit on shelves.
i haven't read anything that says Apple is sitting on a huge supply of unsold watches. In fact, isn't Apple really good at adjusting manufacturing so they avoid exactly this scenario?

When I was at the Apple store last week trying one on, they didn't have my model in stock (42mm space gray). I only got a watch yesterday in a Manhattan location.

I really wish Apple would have focused on some type of e-Strap. One that would coordinate with my $1000 mechanical Robert Weil watch. If the e-strap came from Montblanc, Google, Apple, or pebble I would not mind. As long as it matched my R. Weil style and gave me usable functionality. Also, when I sent it in to Robert Weil for service, they respected the e-Strap, even if it was from Montblanc.

http://techcrunch.com/2015/03/03/heres-a-closer-look-at-the-...

I really really like the idea of a smart watch band for a handful of reasons, but a smart watch is going to move more units.

A fitness tracker with a watchband form factor and can vibrate for phone notifications would satisfy most of my smart watch desires (I wouldn't even need a screen on it). I'd buy one of those in addition to the smartwatch I have now, as I still wear my nice watch when I need to dress up. My smartwatch is uglier than the apple watch, but don't think a black LED screen on a wrist is ever a good look.

But smartphones have made many people stop wearing watches in general, and fitness trackers aren't the most popular products either. And a secondary screen (like in your link) for someone who doesn't want a timepiece in the first place doesn't make sense, just give prime placement to one really nice display.

Plus branding. People don't just want smart functionality in a good looking watch, they want to be seen wearing an Apple Watch.

Good. Apple isn't as original as it used to be, but it remains just as restrictive. They can now demonstrate to the world that their previous successes were in spite of their impulse to be controlling, and companies such as Microsoft can stop aping every single Apple restriction and money grubbing $99 fee in cargo-cultish attempts to gain Apple profitability.