As opposed to, either buying a bracelet as a fashion accessory, if you're into that, or else buying a nice looking watch that tells time.
Or waiting until somebody figures out what problem "smart watches" solve. All the examples I've seen are just replacements for an exercise assistant comp with email notification. Unless you're a 1%-er who is allowed to exercise while you're supposed to be working, you don't need the email notification; you're on break, you'll get it after you shower and go back to work.
If you're into accessories enough to want useless computerized jewelry, you're that much less likely to be interested in the very cheapest model. Probably the only reason to have one at $350 is to sell to developers who want to write apps for the expensive ones.
This is exceptionally bad for their brand image IMO. They're back-ordered, of course they are; the company has a lot of "fans" in addition to regular customers. The fans cause the back-ordering of everything they make, but the regular customers who follow after are the source of most of the profit. The biggest danger is a product like this that makes the fans look really foolish to the normals. The brand image they've developed, the fans look a bit silly in buying things early, but the perception is that they're buying something that they like for certain important reasons. There is the presumption that it is aesthetically superior. That sort of brand image can be substantially undermined if the perception shifts from artistic elitism to money elitism.