This is no different to software, but it's a lot more problematic with hardware. Unless you plan very well, patching hardware is expensive and/or impractical. You're often much better off releasing a basic, but very functional product (i.e. your MVP) and iteratively addressing customer demands with later version.
The second is that selling complex products to consumers is really hard. If you sell stuff to industry the benchmark for smartness is often much much lower.
If your BOM cost is say $200 including labour, then you should be targeting a price of at least $600. That $200 doesn't include the cost of design, tooling and so on. If you bought a $50k CNC machine you want to get some ROI! If you go for a distributor, they're going to take 10-20% (and they may want a volume discount). You might want some room to have sales, or offer bundle discounts to attract customers. You have to ship the product, market it, support it and fund the next iteration. Why go for razor thin margins? If you have a niche, people will pay. Apple have this nailed - they are expensive because they actually price their products sensibly and they're rolling in cash as a result.
That's part of the reason Pebble failed; they were forced (like from pressure from VCs) to expand their business and they really over extended.
But more than that, I think Pebble was dead the moment Apple, Samsung, and the other big players jumped into the market. Pebble's first mover advantage was destroyed almost immediately by the technology and marketing might of those companies.
Software is often harder for big companies and easier for small companies. Hardware works the other way.