[nowherebeen]

Market segmentation. People that buy these watches are more likely to buy an Apple watch than a >$40k watch. The people that do will still buy it for fun sake. It might slightly dilute their brand, but the cash cow is going to be massive to justify.

This is the same strategy used by single malt whiskey brands. They have bottles that defined them as company, but they also sell tons of un-aged whiskey to the mass audience. They gobble it up because it's got the brand name. Most of their revenue comes from these lower end, higher margin whiskeys.