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No, Apple wasn't "competing with Rolex" on price. Ten grand was to defuse the "OMG, $400 for a watch?" response to "well, you COULD get a stupid $10,000 version, but at $400 it's great." It also made the Rolex look lame ("it only tells time"), legitimizing getting an Apple Watch (far cheaper at that) instead.

Offering a handful of $10,000 Watch Edition probably segued into $1B in profits from associating the product line with high fashion. Nobody is ashamed to wear an Apple Watch with a 5-digit suit.



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