They aren't trying to fool anyone with branding. They even call it "Apple Watch Hermes" in the copy on the Hermes website:
"Uncompromising craftsmanship. Pioneering innovation. Groundbreaking functionality. Apple Watch Hermès is the culmination of a partnership based on parallel thinking, singular vision, and mutual regard. It is a unique timepiece designed with both utility and beauty in mind. With leather straps handmade by Hermès artisans in France and Hermès watch faces reinterpreted by Apple designers, Apple Watch Hermès is a product of elegant, artful simplicity — the ultimate tool for modern life."
If you think that's bad, imagine Rolex giving their watches to Tiffany, back when they were trying to get into the luxury game. They wrote Tiffany right on the dial, and Tiffany didn't contribute anything else to the piece. Things sure worked out for Rolex, as now they're synonymous with luxury.