It's probably more the context. This isn't a watch forum where people routinely talk about spending 5 figures on a watch. While I suspected the $10,000 price estimate was right, had it come in at $5,000 I'd have been tempted. I have better things to do with $10,000 but there are investment bankers out there who get $250,000 bonuses in a good year, which the OP might very well be. There are also nouveau riche types in places like China. I think that the yellow gold with rose leather band Edition is geared to the Chinese market.
Will Apple sell these in the numbers they are expecting? Who knows for sure, but I don't see what's wrong with Apple trying. After all, it's very common in the watch industry to sell a high end halo watch in 18kt gold and a similar style for substantially less. Look at Burberry's web site.
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Because no one else is out there selling an 18kt gold watch for $10,000 or more.