Cowen & Co. analyst Timothy Arcuri believes the device could be significantly cheaper through subsidies from insurance companies.
The analyst’s speculation is based on the belief that the iWatch will be focused on health.
“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.
Also, according to Arcuri, the iWatch will be launched in September with a retail price that is expected to start from $250.
The analyst expects the smartwatch to be different from other similar products, especially in terms of health because it has a number of important innovative features.
“We continue to feel this product will differentiate itself with existing wearable products primarily from a health perspective with a number of key innovations including noninvasive blood cell count and blood pressure and other more pedestrian features like heart rate,” he said.
A recent rumor claimed that LG will produce flexible OLED screens for the iWatch.