At Apple's last event they said they were the number 2 watchmaker by revenue. They can't have gotten there by only selling to techies.

Anecdotally, I see tons of Apple Watches around Manhattan.

I hardly know any people who still have a traditional watch, yet alone a smart watch, so #2 watchmaker doesn't mean much to me ;) I haven't seen many Apple Watches yet in the wild (may be 2 or 3) might have to do with the fact that I'm from Germany (Berlin). A lot of iPhones here though. I know, anecdotal evidence etc...

You are underestimating the popularity of the Apple Watch. Sure, it's nowhere near as ubiquitous as the iPhone, but it's by no means limited to tech circles. Part of the problem is that many people that might be ineterested in one were not able to justify the price. With the new price drop on the series 1 I suspect the market share will inrease significantly. Others meanwhile were waiting for the second generation because they didn't want to be on the bleeding edge. The series 2 is sold out everywhere and has a 3-5 week lead time, about the same as the iPhone.