I too am thrown off by the pricing, and I assume that many more young customers my age are. The watch in my eyes is simply an accessory to the iPhone, sure it has extreme potential, but is not there yet. The main attraction the first announcement of the watch had for me was the fitness tracking capabilities, although now they have proven to be subpar, and not worth this amount. Instead, I can get an amazing fitness tracker like the Jawbone Up 3(hopefully sometime this year:roll eyes🙂 and a classier Fossil watch which will provide much more for me.
For me, Apple just hasn't solidified how the watch will impact my life $350 worth.