For the Apple watch edition, I doubt that Apple expects it to be a large revenue driver. It's an obvious marketing move to position the watch as a high end lux

For the Apple watch edition, I doubt that Apple expects it to be a large revenue driver. It's an obvious marketing move to position the watch as a high end luxury item, to 'frame' the pricing discussion, and to generate buzz. This is a technique that companies (especially aspiration luxury brands) have used forever. Set the price of your A-level item unusually high and suddenly the price of your B-level item seems like a bargain. Where other e-watch makers are struggling at the $200-300 price point, Apple is selling its C-level watch at $350 and its (probable) volume seller B-level watch starting at $549 without any problem. I think they understand the human psychology of luxury purchase decisions pretty well. It's smart (and slightly evil), but I don't know how this will fit in long term with the rest of their products which are 'premium' but until now haven't pushed so far into 'luxury.' An iphone is slightly more expensive than an S6, but is perceived to be 'premium' in some way. Apple doesn't make diamond encrusted $10K phones even though their are luxury phone brands that do. This is new territory for Apple, not sure that I like it.