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As I mentioned in Fitbit Ionic's Uphill Battle, the expectation that Apple would follow its iPhone premium pricing strategy and make the Watch the premium alternative to competing smartwatches has been very wrong. Apple is confident that with its unique position at the intersection of technology and liberal arts, it has all the right ingredients to dominate the smartwatch market the same way it did the music player market with the iPod (almost 80% market share at its peak). Apple is going after market share and mind share and prices the Watch aggressively, matching or sometimes even undercutting its competitors such as Samsung (OTC:SSNLF), Garmin (NASDAQ:GRMN), or LG.

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