I don't think this should really come as a great surprise. One would have to expect the initial sales numbers were partly due to the "something new" effect, and Apple clearly has a devoted following in that regard.<p>That said, I think the smart-watch market (especially apple) is still missing it's killer app. I thought for me it'd be the full-time fitness tracker, but in practice the experience has been inferior to dedicated fitness trackers I already own (but devices I wouldn't want to wear or have limited utility outside of the activity, for example).<p>The OS update does look promising, and seems like a much better move that pushing out new hardware with the same old software like many were speculating.