Jim brings up a good point about servicing costs (for any mechanical watch). It is very expensive. Yes, there are those who say I've owned mine for 20 years and have never done anything to it and it runs. Well, your car may run for a long time too without doing any oil changes.
Anyway, I've often wondered what Rolex's profit margin is on, say, a Submariner? The watch has been around forever with little change. What could it possibly cost to manufacturer one of these things in the volume they're pumping them out? $250? $500? $750, maybe? There's nothing inherently expensive in the materials used. Not bad for a $10,000 watch!