This is Apple. They elevated the tablet, mp3, and smartphone industry. They could do it too for the watch!
But people were using tablets(really just computers), mp3 players, and smartphones. They may not have been as popular before Apple did their thing, but they were growing areas. Watch wearing has been on the decline since people started to carry phones/mp3 players in their pockets. You could say Apple really helped to kill the watch industry.
Now Apple is going to have to revive watches, not just improve on something people use.
I am not saying Apple could not really do something with the iWatch, I am just saying this is a different game.