Apple Inc. (NASDAQ:AAPL)’s iWatch could be cheaper than expected, according to Cowen & Co analyst Timothy Arcuri. The analyst believes that subsidies from health insurers would bring down the price of the wearable device, says a report from Investors.com.

Apple iWatch

The analyst believes that it is “possible the product (iWatch) is backstopped by some sort of insurance subsidization model similar to the carrier subsidization model for the iPhone.”

More health apps to reduce cost of medical care

According to the report, Apple Inc. (NASDAQ:AAPL) will unveil iWatch in September during the holiday season. The iWatch is expected to have many sports features when compared with other wearable devices. The analyst added that the product would have many differentiating features, but primarily focus on the health features including non-invasive blood cell count and blood pressure monitor along with other more pedestrian features like a heart rate monitor.

Previously, there were reports that the Apple Inc. (NASDAQ:AAPL) iWatch would have sensors that will be able to track down health and fitness related parameters than other devices. Apple is also expected to unveil a new Healthbook app in iOS 8 that would analyze all the data collected from the user.

Such health related features may induce the health insurers to subsidize the cost of the device. The analyst mentioned that if people wearing an Apple Inc. (NASDAQ:AAPL) iWatch could better calculate the steps taken, calories burned, blood pressure, heart rate and other biometric data, it could lead to improved lives and less need for medical care.

Apple iWatch to face tough competition

Arcuri suggests the iWatch will be priced around $250, and the company may ship around 18 million units next year. Last week, a report was published that stated the probable launches of the Apple Inc. (NASDAQ:AAPL) products and suggested that iWatch will come in different variants.

Apple iWatch will be in direct competition with the products from Nike, Jawbone and Fitbit. Samsung also launched its Gear Fit bands for the price of $199.99.

In the current fiscal year, Apple Inc. (NASDAQ:AAPL) is expected to launch many products like Apple TV, MacBook Pro and Mac Mini, iOS8, iPhone 6, iWatch and an Apple television set. The company will kick off its annual worldwide conference in June where many devices are expected to be showcased and some important software updates are also expected.