I thought the same thing when I started my startup (we make physical stuff too). Then I started learning about injection molding, tooling, materials, minimum order quantities, packaging, etc.

It turns out that very simple things are very expensive to start with because of the low quantities. I thought an order for 30,000 was massive, but some companies we worked with flat out laughed in my face.

So even though he raised a million bones, he's "only" making < 13,000 watches. That'll still be pretty expensive for him.