As technology outgrows the tech market, it moves from selling utilitarian technology products to selling things that fulfill other desires or pleasures. The Apple Watch is a perfect example of this market shift, says a16z's Benedict Evans. "The Apple Watch is another step in abstraction, and another step in the importance of delight rather than speeds and feeds. There is a lot of psychology and user behavior and perception around the Apple Watch as opposed to pure utility." Technology meets desire in this segment of the podcast.
See also my blogpost here, written after the original announcement.