Previous rumors and predictions about the Apple iWatch – Apple’s rumored entry device into the smartwatch market – suggested that the price of the device could range from a few hundred dollars to thousands of dollars for high-end versions. Although there will certainly be some individuals willing to pay the thousands of dollars for an Apple-branded watch, most people probably wouldn’t even want to pay a few hundred dollars for one. According to one analyst, however, people may not have to pay that much after all.
Timothy Arcuri, analyst for Cowen & Co., believes that Apple may sell a model which is subsidized by health insurance companies. This would work in a way similar to how the iPhone is subsidized by cellular carriers. Arcuri said this:
We continue to feel this product will differentiate itself with existing wearable products primarily from a health perspective with a number of key innovations including noninvasive blood cell count and blood pressure and other more pedestrian features like heart rate.
Numerous earlier reports have stated that the iWatch will have a number of health-related features and capabilities, such as the ability to monitor blood pressure, heart rate, and more. These features will most likely work hand-in-hand with the purported Healthbook app in iOS 8. This would most likely be the compelling reason for health insurers to subsidize the iWatch.
Lastly, Arcuri predicted in his report is that he believes the iWatch will ship this September with an average selling price of $250, and expects it will ship 18 million next year.
The iWatch is yet to be confirmed by Apple, and so far most information regarding it is based in rumor and speculation. Stay tuned for any new information regarding the iWatch and an expected release date.