One in ten US broadband households plan to buy a smartwatch in 2015, however, 84 per cent of them won't spend over $250 on the device, according to recent wearable research.
The survey, from Parks Associates, suggests that the price point of $100 (£65) to $250 (£160) is roughly equivalent to a high-end fitness tracker.
In addition, the study reveals that those who are willing to spend more than $500 (£320) on a smartwatch will only buy one if it works without a smartphone.
This is bad news for Apple as it means that not everyone will likely to purchase an Apple Watch, because of its current tethered setup and most especially because of its price tag. which begins at $349 (£225)
Based on these results, it seems likely that cheaper smart watch makers will come out on top in terms of US sales this year as most people are expected to opt for devices at lower price points such as the Pebble Time or Motorola Moto 360.
"Fitness applications are the most popular use cases for smartwatches," Park Associates health and mobile product research director Jennifer Kent said. "But music and weather applications are also popular, showing consumers value the multi-functional quality of the smart watch."