Apple's Watch is designed to be both fashionable and functional.
Apple's Notebook Marketshare Growth and High Margins
Despite Apple's relatively modest marketshare (~10%), they capture 30% of the revenue amongst notebook manufacturers. As Wilcox puts it, "for every three dollars spent on notebooks at U.S. retail, one went to a Mac." This reflects the higher sales cost of Apple's notebooks which have an average sales price of $1471 as compared to Windows laptop average sales price of $694. Wilcox questions if the growth of low-cost netbooks will change Apple's strategy but acknowledges Apple's success with this high-margin plan.
Apple's notebook marketshare may be even more impressive in select markets. MacUser reports that Amherst College has seen a shift in computer ownership of their incoming freshman. Students in last year's and this year's incoming class are now more likely to own a Mac than a PC.