Because the mark-up on the actual price of producing a product is inflated due to the reality distortion field. Apple is not in the business of selling a collection of electrical conponents, silicon and labour. They are selling admission to the experience of owning an Apple product.
Apple superfans won't wear this watch because of some feature that makes their lives easier somehow. The first buyers will wear it because they enjoy wearing it from a physical and psychological standpoint.
I'm not sure your follow up clarifies your point, but it's entirely possible I'm misunderstanding it.
Are you saying that the only way Apple can sell their products for such a profit (over the raw cost of materials) is because of the Reality Distortion Field? We know that they've been working on this for years with all of the associated costs of designing and developing a product in that time.
No what I am saying is that the much talked about "reality distortion field" is nothing Apple specific. It's simply the ability of a company to charge a higher mark up due to premiumness of its brand.
People don't buy Mercedes cars because of the high tech in the cars (although that's a bonus). They but them because they're Mercedes cars.
In the same way people don't buy Rolexes to tell the time (although that's a bonus). They buy them because they want to wear a Rolex.
As easy as it is for some of the snobbier techies to dismiss Samsung's or LG's R&D I am pretty sure their smart watches didn't come out of thin air. They simply end up charging less for them because they never imagined them as premium products but rather utilities. They didn't start with a "reality distortion field".
Apple superfans won't wear this watch because of some feature that makes their lives easier somehow. The first buyers will wear it because they enjoy wearing it from a physical and psychological standpoint.