I never meant to imply the watches were counterfeit. Sorry if anyone misinterpreted my post. They are genuine name brand, but, as I said, some parts are either a material that isn't found in the high end model, or a part that is not proprietary to the brand. For example, some gears may be stamped out en masse, instead of punched out individually. Or they may be from an outside vendor instead of in house. The parts are cheaper, and assembled for less, so they charge less. I have heard that this market accounts for a huge portion of a company's sales.
The down side is, if you are buying the watch for investment reasons. There is virtually no appreciation in value. And as far as heirlooms, don't count on it. Many of the parts may wear out.