Maybe they heard about how Sennheiser was able to sell the same headphones $150 apart by removing a piece of foam.

http://mikebeauchamp.com/misc/sennheiser-hd-555-to-hd-595-mo...

I suspect a number of Garmin watches at different price points using the same chips, yet each price point has a different range of features enabled. Some are clearly artificial differences. Like my wife's watch can't "resume a run later" if she pauses it in the middle, but mine can. She either has to save the run, or listen to reminder beeps every five minutes until she starts again.