iWatch’s expensive price-tag could be subsidized by insurance companies

iwatch concept nike fuelband

According to a report from last week, the high-end iWatch model could cost “several thousand” dollars. The iWatch is Apple’s much-rumored wearable device that’ll be focused on health and fitness.

A “several thousand” dollars price tag may not attract a lot of buyers, but Apple will reportedly use the same strategy that made the iPhone so successful — subsidies. As per Timothy Arcuri, an analyst with Cowen & Co., Apple will rope in health insurance companies to subsidise the iWatch:

“We continue to believe it is possible the product (iWatch) is backstopped by some sort of insurance subsidization model similar to the carrier subsidization model for iPhone,” he wrote.

Its pitch apparently would be that an Apple a day keeps the doctor away. In other words, if people wearing an Apple iWatch are more cognizant of steps taken, calories burned, blood pressure, heart rate and other biometric data, they will lead healthier lives and have less need for medical care.

The biometric sensors on the iWatch will feed data to Healthbook, an iOS 8 app that’ll help users keep track of their health and stay fit. The app will feature a similar interface as Passbook, with each card representing the category of functionality in the app.

Reports claim Apple is targeting a September launch for the iWatch, with initial shipments estimated at 5.5 million units. The device is said to come in two sizes — 1.3 inches and 1.5 inches — to accommodate different wrist sizes.

Do you think a subsidized pricing model for the iWatch would work? Let us know in the comments.

[via Investors.com]