Reasoning is from the first iPad, a new product category, where they had the media assume it would be $1000, only to exceed expectations by halving the price to $499. I think the same is going on for the Apple Watch. None of these will include the band. Cheapest band will cost $79. Apple Watch Sports Edition: $249 Apple Watch Stainless Steel: $349 Apple Watch Gold Edition: $999 The watch is for existing iPhone users. If they can pleasantly surprise their base these watches will fly off the shelves.