While the Apple Watch is a companion notifier not just a watch, Apple sees that they are fighting for 'beach front property' on the wrist. The competition is NOT Samsung, but all the fashion time pieces. No one needs a watch to tell time. There are clock faces everywhere plus all phones, smart, or just feature. And a cheap watch is as good as the most expensive.
Think wrist not watch.
Think 'ear'. The next wearables, Headphones and earbuds, can do much more than transmit and receive sound. Apple will pursue this... I hope/guess. And again, style and fashion make or break.