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As I said before I don think for one second an LG Urbane is going to be mistaken for a higher-end traditional watch no matter how much they try to mimic the real thing with round displays and heavily skeuomorphic analog watch faces.

I don't think anyone who is buying a smartwatch is doing so to convince anyone they actually bought a Rolex. But that seems to be a sticking point for you -- and the only reason to replicate a high end watch face. What I see is a desire for personal choice. Why does Apple emulate a Mickey Mouse watch face? Is it so people seeing it will think someone is wearing a real Mickey Mouse watch? It's absurd to think anyone would buy a watch which presents a black screen some 90% of the time when not in use in order to pass it off as the real thing. It's strictly for personal enjoyment, since the wearer is likely the only person who's really going to get a good look at that face. Why do you think people are so upset they can't customize their watch faces beyond the current 11 or so Apple offers? Why did Apple eliminate 3 more customizable watch faces that they heavily advertised before the March key note?

Moreover, what do the decisions the Android watch manufacturers make wig respect to their round watches have to do with what Apple would do? You keep holding the Android round watch designs as reason why Apple won't do it. Well how is that different from holding up mini tablets and huge phones at a time when Apple stated flatly they would never do those products? At least this time Apple was smart enough not to say they would never do an round watch. Just because some Android designer thinks cutting off text is no big deal, doesn't mean that's the only way to do it, or that Apple would ever do it.

And finally the point that keeps eluding you: fashion is in of itself the only justification necessary to do anything with respect to wearables. Of course it's too early to know anything about how sucessful the Watch is going to be, much less whether there will be a market for round smartwatches, or even if smart watches are going to be a thing. Apple has already proven it has an installed user base, who tend to be more affluent than their Android counterparts, as well as more fanatic about adopting their products, which has catapulted them ahead of all other Android smartwatches previously sold combined. It's unlikely that the Android market would be able to support a device as well engineered as the Watch. So assuming there will be some rush to Android because they make the only round watch is not a particularly good gauge of whether Apple should make a round watch or not. This was certainly not the case with the Phablet phones, which I believe still made up a relatively small percentage of the Android market, yet Apple jumped into that market anyway. Now Android has stepped up their game somewhat in terms of quality, so who knows, perhaps the Android watches will as well and target Apple users with somewhat less functional iOS compatible apps.

But the watch isn't the same at all, because Apple is courting the fashion industry for the first time. And whether Apple continues to value their opinion of the watch may be a far more influential decision maker for future Watch designs than any defection to Android products. If Apple's hope is to replace the traditional wristwatch with a smartwatch, then they are going to have to address the fickle whims of fashion and desire for individual choice -- which is also the driving motive behind people wanting custom watch faces. And in the end, the decision to do it will only increase Apple's revenue, particularly from watch people who tend to regularly wear different watches from their collection. With two different shapes, and sizes, and three different colors, not even counting straps, Apple could sell up to 6 distinctly different-looking watches for some customers. And there's value in that, especially if it turns out these watches don't need the same kind of obsoleting tech advance upgrades as the rest of Apple's ecosystem hardware. Apple has already crammed about as many features possible in the watch with very little else that can be easily added to encourage tech based upgrades. In the absence of that as a significant motive, then fashion, and style become a major feature for future sales of the watch.

And let me just point out: it's not just Android Apple will be competing with. As long as the Watch is just an accessory to the iPhone, rather than a stand-alone device, they will also face competition from the very watch industry the Watch seeks to overtake. They already make hardware equal to or superior to Apple's own, so they only need to develop software, which of course Apple has a crippling lead on. But it's not insurmountable. What if Rolex offers even an Android level round smartwatch? Chances are watch people are going to buy it, as an alternative to even daily wear of the Watch they already own. And why wouldnt Apple want a piece of that?
 
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I don't know about your particular Rolex Datejust, but I'm sure it doesn't protrude as much as the Watch, in which the whole crystal sits atop the case with no protective edges. I also have a Citizen EcoDrive and the crystal does protrude slightly, less than a millimeter perhaps, but the bulk of it sits below the bezel. And it's survived the test of time and abuse, having dropped it on it's face more than once, flung off my wrist when a link pin broke, been run over by a car wheel, dropped from heights, etc.

While a slight protrusion may not be uncommon, certainly a sapphire crystal with fully exposed edges is not common.

http://www.crownandcaliber.com/wp-content/uploads/2012/11/Rolex-Datejust-ref.-1601-Side-View.jpg
 
http://www.crownandcaliber.com/wp-content/uploads/2012/11/Rolex-Datejust-ref.-1601-Side-View.jpg

Wow. I stand corrected. That's one huge protruding bezel on a Rolex. On the other hand that's probably the thinnest Rolex I've ever seen. Had no idea they had such a thin watch. Interesting by comparison, my Movado is extremely thin, though the crustal doesn't stick up that much. Then again it doesn't have any complications. Probably a much thinner crystal as well.

However, the base of the crystal is protected by the bezel, unlike the Watch which sits entirely on top of the case.
 
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