I think it's sales. So their watches sell almost like macs. No wonder they don't really care about computers. No growth potential for computers, but very few people bought watches, so much more potential to grow.
I can only support your comment anecdotally (perhaps actual figures have been published somewhere), but the majority of my circle has purchased airpods. They're the only Apple product I love. I don't know any current watch wearers, although many purchased one when initially released.
Multiple people at work have an Apple Watch and I'm starting to see it more and more around the city. Definitely has some market penetration.
But also Apple is a premium products company so not everyone needs to have one, just a decent sized niche. At $400-500 they make a killing off each sale. Same with AirPods at $200 too... other similar bluetooth pod earphones sell for $40-60 on Amazon and they're pretty good products, so it can't be too expensive to produce.