Yup, it's purely a status symbol. And the outrageous price is part of that status. Remember that crazy iPhone app called "
I Am Rich that did nothing but display a red jewel on the screen? It cost $1000! And some fools actually bought it!! There's not a
big market for these stupidly expensive devices (and apps), but there still are
a few people who will pay. Maybe it's enough to just get a handful of these Tag Hauer phones out there to advertise the brand. Making a profit may not be the goal here.