Apple was smart not to compete on the low-end for watches. Median income in the USA is $68,703. Why would someone spend 1/25 of 1 percent of their income on something that they wear 100% of the time? That makes no sense. I shell out $200-$300 each year for the latest FitBit (Apple Watch is promising, but that battery life :(. The sleep tracking is gold).
Be that as it may, there's absolutely a non-trivial amount of revenue available at the low end of the market. Apple historically never participates in that market, but that's an opportunity for other hardware providers.