How will the Apple Watch impact iPhone 6/6+ sales? Wouldn't it cannibalize iPhone 6 and iPhone 6+?

I believe Apple watch is not being released along with the iPhone 6/6+ to minimize the cannibalization of new iPhone sales. There seems to be a considerable overlap in the target market for both the Apple watch and the iPhone 6 and it's unlikely that a high percentage of customers will buy both the products even if they like both the products. By early 2015 most of the loyal apple customers eligible for an upgrade would have upgraded to the iPhone 6 and would allow apple to introduce the watch to the market along with new iPads and possibly a retina macbook air. I think Apple got their iPhone pricing right this time and would convince many customers to shell out at an extra $100 to get a 64 GB iPhone instead of a 16 GB one. Paying $ 100 for an additional 16 GB was a joke.