personally feel watch struggling 2 reasons, 1) design not suiting many, being thick , not available in circular option or additional chassis colours @ affordable prices , 2) os , ui being pretty disappointing @ launch, lack of killer apps boot.
issue feel if apple fix latter, public won't regain interest in watch unless accompanied physical design change. until fear public see same "first gen" watch , feeling of under-deliverance comes it.
yet it's apparently rumored gen 2 feature exact same physical design. not slimmer, no new shapes, maybe new finishes @ higher price points.
don't think enough , i'm wondering if apple lose ground competitor if takes until gen 3 see design changes/additions.
it's not struggling.
it's not selling in giant iphone-6-style numbers because a) it's expensive , b) doesn't fill particular need - it's have tinker make work you.
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