[Swordmaker]

The number one driving factor behind it's popularity is the anticipation of others seeing the purchaser wearing it. It might as well be a Gucci handbag, or Prada shoes. It's functionality or usefulness is entirely secondary in the reasons why most people want it. ($20,000.00 version sold out? Really? For Functionality?)

In a way, you are right on the high end Apple Watch Editions in 18K gold. Surveys of buyers found that most of them were bought as gifts for others. That makes the giver look good to the recipient.

There are many watches whose functionality is just as good or better than a Rolex. Why do Rolex owners buy Rolex Watches and not the others?

[DiogenesLamp]

There are many watches whose functionality is just as good or better than a Rolex. Why do Rolex owners buy Rolex Watches and not the others?

For exactly the reason that they convey high social status. Humans haven't changed much since forever. :)