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.