Expensive watches are luxury fashion items that age well...you aren't going to give your grandson your thirty-year-old Macbook or your thirty-year-old Apple Watch as a wedding gift

I think they're doing something a bit different here. This has traditionally been true of the luxury watch market. I don't think Apple is going after watch guys (and they are mostly guys).

Many people don't realize this, but the Apple Watch has the lowest starting price of any new category in the history of the company. That's the Sport. With the Edition, (and regular Apple Watch), they aren't going after luxury watch collectors, -they're going after luxury goods buyers. Fashion, jewelry, and yeah it's also the most capable fully featured smartwatch on the consumer gadget side too. There are a ton of wealthy people who spend well over a grand on a jacket they wear a handful of times. High end consumers, not high end watch guys.

And this is just V1. It's going to get cheaper and more capable. But as it stands with the number they sold already (est), they're on track for this to be a 1 billion dollar profit in year 1 alone. A rounding error compared to their other categories, but a number that other companies would kill for and objectively wildly profitable for a V1 product that is only going to improve in every way.

I don't think I would call its current incarnation a dud functionally or business-wise, and I think this category is only going to be more compelling as technology progresses.

A $10 casio is more accurate than a $10,000 rolex. I'd wager that Apple watch delivers more functionality, fashion and design for the buck in the minds of its buyers than just about any watch on Earth.