Here is a good piece from the Verge written by someone who is actually a connoisuer of watches. He explaines how the prices of watches work and why some cost as much as they do.
With Apple Watch, the price differentiation between the entry-level Sport at $349, the standard Apple Watch at $549, and the Edition at $10,000 is about perceived value — what materials are used in the case, bracelet, and straps, but also how much people believe they should be paying for the product. In addition to perceived value, mechanical watches are also priced by human value: how much of the work is done by hand (in many cases using 200-year-old methods). For example, a watchmaker named Philippe Dufour makes just 12 watches per year, alone in his one-room atelier in the mountains of Switzerland. A simple, time-only piece can cost $100,000. Whether the case is gold or platinum, the price of a Philippe Dufour watch remains (roughly) static — you are not paying for materials, you are paying for Mr. Dufour’s time and touch. The Apple Watch has minimal human value, and that is the biggest difference between it and its mechanical counterparts.