How much should/will Apple charge for their iWatch?

Earlier in the week I placed a forum post outlining what I expect from the first generation Apple iWatch.

What I didn't mention was how much I think this mythical product should/will cost. I believe Apple will see the iWatch very similarly to how they view the Apple TV from version 2 onwards, i.e. a limited standalone device that is much more functional alongside another iOS device, particularly the iPhone.

That said I don't think Apple can sell it at the same $99 price point as the Apple TV. But give this will be, in my view, primarily an iPhone companion device I think Apple will price it very aggressively, and I wouldn't be surprised to see it come to market at $199.

Apple's play with this device will (at least initially) be to increase the sales of their biggest cash cow, namely the iPhone.

What do you guys and gals think? Will Apple price their smart watch like the original iPad where none if their competitors simply couldn't match them or will this product be priced with an Apple tax, like many of their products are perceived as having?