Apple’s iWatch could cost over $1,000

Apple's iWatch could come with an eye-popping price.

One Apple watcher predicts that the company will sell the long-rumored device as a luxury accessory and that certain models will cost upwards of $1,000.

KGI analyst Ming-Chi Kuo also claims the wrist gadget will come in two sizes — a 1.3-inch and 1.5-inch display — when it goes on sale later in the fall.

"Referring to the rules of the fashion market, we predict the iWatch casing and band will come in various materials. The most expensive model of the iWatch line will carry a price tag of several thousand US dollars," Kuo wrote in a report to clients.

The watch will trump the iPhone 6 as Apple's most important product launch this year and will determine whether the company "still has the ability to continue making game-changing products with Tim Cook at the helm," he added.

Earlier this year, Apple CEO Tim Cook hinted at a new product category. With Samsung and other rivals rolling out smartphone watches, most observers believe Apple is preparing to jump into the space as well.

Morgan Stanley analyst Katy Huberty said the iWatch could generate $17.5 billion in sales in the first 12 months — more than the iPhone or iPad did in their first year.

That was assuming Apple priced the watch around $299 and had a similar customer base to the iPad.

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