People will get their panties in a bunch when Apple announces the Watch Edition costs several thousand dollars, but that’s mostly because these people don’t understand what Apple is doing.
This quote from John Gruber’s post about Apple Watch pricing hits the nail on the head:
Apple Watch Edition is not a tech product, so don’t try to price it like one.
To paraphrase Gruber, the solid gold Apple Watch is not a tech product, it’s a luxury item, and it shall be priced accordingly. You can think it’s insane, but at the end of the day, it’s not any less insane than Rolex selling a gold watch for $20,000.
For more thoughts about Apple Watch pricing, I invite you to read Gruber’s take.