If the price points wind up in the territory that Gruber is predicting I think it'd be a bad move for Apple long term. To become a luxury brand is to cater to the 1% crowd and I'm so sick of hearing people say things like, "then you're not the customer they're catering to." Income inequality is one of the greatest threats to the long term viability of the US economy/stability. To head off in this direction as one of America's top and most beloved companies is to lose the Apple core (no pun intended) philosophy of the crossroads of liberal arts/technology. Instead they'd be starting to position themselves at the crossroads of tacky "bling" and the divide between the rich and huddled masses. The jewelry analogy may be correct, but it is rather gross as a mantle to pursue. But may be I'm just a quasi-marxist at heart.
Im hoping the steel watch falls in the 350-700 range, but after reading Gruber's prelude, Im suddenly nervous that he is correct and that the steel watch will fall in the 750-1000 range.
Fingers crossed for the ~$500 range.