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I've had exactly the same problem. Apple's response was that it was not a safety issue. They sent files on not wearing to watch too tight and how to clean it. Having stated that won't help an allergy, they told me I should have looked up the components of the watch prior to buying one. The fact that I have never previously been allergic to a watch didn't seem to matter. Hugely disappointed by their response. I didn't expect a new watch, but thought they might at least give me a discount on a new strap or preferably send me a new one.
 
I've had exactly the same problem. Apple's response was that it was not a safety issue. They sent files on not wearing to watch too tight and how to clean it. Having stated that won't help an allergy, they told me I should have looked up the components of the watch prior to buying one. The fact that I have never previously been allergic to a watch didn't seem to matter. Hugely disappointed by their response. I didn't expect a new watch, but thought they might at least give me a discount on a new strap or preferably send me a new one.

I had a completely non-interested response at the apple store the other day as well. I develop a nasty rash over a few weeks. I asked if they would do a good will gesture of a discount on the sports loop as I couldn't wear the watch in its current state and they were not interested. I was told if you want a cheaper strap then third party straps are available. Now if I want a new watch, I have to buy a watch AND another strap. That isn't appealing and I won't be going to Apple again. The same day my phone was in as the audio on the logic board had failed out of warranty. Again not interested. Quite frankly, you pay over the odds for Apple and I don't feel we get the long term support we once did. Bad show Apple!
 
You should have gone with the Sun. They love to show “skin” on page 3. It’s been a while since I lived in England so I don’t know if the still do that.
 
This is a very old story, but the first I've seen it, it just surfaced due to some recently added comments.

I have to point out there's something wrong with the original story, and as I only went through a couple pages of the responses, so don't know if anybody else caught it.

The rash is roughly the size of the watch back. If worn "normally" (watch face on top/outside of wrist) the band pin is nowhere near there. The pin would be in the INSIDE of the wrist.

Now, I have seen some people wearing watches the "wrong way" from time to time. I guess due to some occupational thing - working with their hands in such a way that a watch might be easily damaged if the face is on the top side of the wrist. But that still wouldn't explain a rash the size and shape of the watch back.

Note the AW4 back is described as "ceramic/crystal" so should not be any issues with metallic allergies related to the watch back with the AW4.

I think earlier generations had some kind of glass/ceramic on the center "sensor" section, but metal surrounding. I now have the AW4 (Nike) and the ENTIRE back is ceramic.

I think maybe there was some confusion here, and it was really the watch back. Or OP got some irritant substance on his wrist, and the watch back laying over it "captured" it, e.g. prevented it from evaporating/washed off/rubbed off, etc.

Curious what model this was.

Will look at my original "series 0" when I get it back. The face popped off, I gave it to a friend. He took it to work to glue the face back on (he's a Materials Scientist - they have some nice magnifying and manipulating equipment at work, LOL) but in his enthusiasm he WORE it to WORK (with the Jack-in-the-box face...) and I think shorted out the battery. I have yet to collect it back...

The only thing that could possibly make sense of the original story is that e.g. sweat migrated some nickel from the pin around his wrist and under the back, where it was "captured", rubbed all day against his skin, etc.

I believe the "pin" we are talking about here is the metal pin that goes though one of the holes in the sports band vertically, and so the back of the pin would I believe be in contact with your wrist. But on the INSIDE.

I had the sports band with my old watch, now really like the Nike "woven" band with the velcro closure. A lot less fiddly putting on.
 
Well, I am one who is usually the Doubting Thomas on these things as I never have any of the issues. But, I started to get a rash from my SS0 I am borrowing/testing from my son. So, luckily no money invested yet. It is faint in the pic below. You can see it is under the outside circle of the watch and you can see the shape of the watch on my arm. I wear it snug to keep from sliding down arm while doing things that have the arm moving. Gonna keep it off a few days. Not gonna let it get worse. Too bad as I was wanting to see the features on the upcoming S4 LTE then decide on it or a SS3 LTE. Major heart issues and really wanted to enroll in some of the studies. Maybe with Apple aware of this they will make a change in the base. I thought the back on the SS's were ceramic. Guess I mis-read that, since people are attributing this to the Nickel. The pic is from my iPhone X and I am viewing it on my rMBP. So, not sure if everyone will see the rash and watch outline clearly.


View attachment 760585

UPDATE:

I started wearing the Sport Band that came with the S4 in the 4th notch, XLarge band. Seems like a very good fit. No more rash. I must have kept the Sport loop too snug. But, had it where it seemed to be the correct fit for me. Son got me the black one for Christmas. These will be my new bands.
 
The rash is roughly the size of the watch back. If worn "normally" (watch face on top/outside of wrist) the band pin is nowhere near there. The pin would be in the INSIDE of the wrist.

Your enthusiasm for writing lengthy posts to add to 3 year old threads is admirable, but the rash is on the inside of the wrist. Look at the picture again, and compare the hairiness (or relative lack of it) inside the wrist to the 3rd photo, of the top of the arm.
 
That’s wonderful I’ve just bought a second hand S1 Sports hope I don’t get the same problem coming from a ICE watch too :)

Hope your rash healed up quickly!
 
After 3 months of wearing my new Apple Watch 5, I suddenly got a burning pain on the inside of my wrist just as I was going to sleep the other night (I sleep with it for the sleep data). I tried to touch it and it made it exponentially worse. Even though I was half asleep, I had enough wits to consider it might be my watch band giving me the pain, so I immediately took it off and put on the other wrist. When I woke up, it looked like I had had a blister that popped and was now dry. It was exactly under the metal clasp of the band that came with it.

I wish I could say that Apple replaced my band, but after an hour on the phone with them, and sending them pictures, they sent me an email with a link on how to wear my watch, and how to clean it. I'm not sure if cleaning it would help that much, but I happened to have an appointment with an allergist the next day, so asked her about it. She gave a few suggestions, and since I was having other skin sensitivities, suggested that I get tested for metals, which is not a convenient in & out test. She also agreed that keeping the skin and the metal clean, even if it looks clean, can also help any small particles of dirt or debris from causing irritation.

I am disappointed that Apple wouldn't even suggest other bands to wear, but I will probably buy a different band. I found some on Amazon that some of the reviewers said did not bother their metal allergies which sounded very much like my reaction.

I guess since my reaction wasn't at the watch site, but rather, the band, they didn't feel compelled to do as much, but blad that they took better care of the others who have had a good experience with them.
 
Stumpled across this old post as well, had similar reactions (but judging from the pictures not as bad as OP).
Unfortunately, this is no longer how Apple handles such cases in 2020.

Long story short, I (like fieldtech) received links to "Wearing your Apple Watch" and "How to clean your Apple Watch" sections of the Apple Support page, which I obviously already had read before I reached out to the support. And of course they "offered me guidance to seek medical help" if the issue persists. Also they pointed out, that there are Bands with other materials (really?) and some kind of cover for the watch itself (keeping it somehow away from the skin) which I can buy. Thanks for the information, I guess. Saved me 2 mins of Google.

I'll be trying to sell the watch since returning is not an option anymore and will spread the word (part of the reason I sing up to write this). The whole point of having a watch is to wear (almost) constantly to track data (at least for me).

Up until today, I was always happy how Apple handled my cases, but I guess that times have changed. Or goodwill offers like OP has gotten got very very rare.
 
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