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Apple probably wants to tap into the "Apple Watch Edition" crowd that will spend absurd money for the exclusivity and not complain much.

That “crowd” will buy this version instead: https://caviar.global/catalog/virtual-reality

There was no “crowd”. If there were, the $10K watch wouldn’t have been cancelled after tte first generation

I saw exactly one person in the wild wearing one: a store manager at pizza chain. It was completely obsolete at that point.