Re: Obsolete? Upgrade?
Upgrades are irrelevant. The user will need to replace them someday, just like any other $300-$500 consumer good. No one thinks their smartphone will not be obsolete in a decade, no matter how many cores or megapixels it has today.
The interesting question is what about the gold Watch that costs $10K and beyond? I wouldn't be at all surprised if part of the deal for buying one is that you get very cheap (maybe even free?) swaps to the latest on a regular basis. Maybe they can swap out the guts (in case you have custom engraving done, etc.) but more likely they require trading the old one (to recover the gold) and give you a new one. If someone pays $10K for something that has $150 worth of electronics and $2000 (or whatever) worth of gold, they can afford to keep replacing that $150 of electronics for a lot of years and still have made great money on it.
Though people who would spend that kind of money might not be too concerned about getting their money's worth - customers for the gold Watch who might drop more money in a nightclub in a single night, and more money in a single bet at a casino may not be too concerned about buying a new one every year for the full $10K+