I think there are some nuances here. SS comes with sapphire glass on the front, which could mean extra durability and less likely odds to scratch the screen. Also, every stainless steel Apple Watch is cellular, it's an extra on the base aluminium model. The price is steep for someone who don't want cellular but want SS, but for the ones who do want data, the jump in price is not as big as it seems between aluminium and SS. Finally, there is the question of aesthetics, and people who care very much about their look don't mind paying an extra to get stainless steel.Apple Watch has the worst trade in value of any Apple product so spending you money on anything more than a base model aluminum watch is literally throwing money down the drain
If you look strictly the trade in value, it's true that it's not worth it, but arguably the trade-in value vs the resell value is never quite close for any apple device. Someone with a stainless steel AW can sell their AW at an higher price than aluminium, because it includes cellular, it's probably in a better shape after a few years than the aluminium AW, and the premium feel is compelling for some people. But it's certain that the resell value will not be anywhere close what the person paid for initially.
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