I agree with this CEO... for many simple reasons.
Watches are too much of a fashion statement nonetheless for the simplest reason of all, but this isn't just it. I do not see the market opportunity unless Apple comes at us with some crazy feature(via Software NOT HARDWARE) that pushes consumers to open their wallets for a needed feature/benefit. No matter what, I'm sure the feature can be done some other way, with some other device(But, that's not the point... it's the APPLE ECOSYSTEM that is the key).
The hardware utility of a watch is pretty simple... it's a clock. And, let me add one last reason why I think Apple should put an end to these rumors... people wearing them are now at risk for more theft/robbery in due time as they are always open to the eye(NOT in your pocket/purse).
Can it be more than a clock? Yes, of course, but more than anything, and especially these days, a watch is a fashion statement first, clock 2nd, and other items like displaying tide, compass, etc, etc as a 3rd, 4th, or 5th function.
Sooooo, the only way Apple wins is - if the iWatch can outweigh a fashion statement. I personally think the answer is no, and Apple should concentrate on getting into your home with a TV and other peripherals.
I truly see the potential iWatch as just a gimmick device/hardware(just like Siri is gimmick Software), and will only be put into fruition if Apple comes up with some other OS just for it, with a whole new utility in mind. For instance, the chips from Qualcomm & Broadcom will NOT need A-GPS, and can use just GPS functionality without the need for Data. So, the iWatch may have utility now due to chip manufactures' technological progressions.
Can I see Apple debuting an iWatch? Kind of to a degree, but I still don't see the market opportunity for Apple. Mainly, because, I don't see the iWatch being a game changer for the "watch" market that sets its standards through mostly fashion, and NOT utility.
Apple needs to make a cheap & smaller (back to 3.5" screen) iPhone first, due to international demands as well as due to Android offering too many subsidy contracts with the Telecommunication companies. After that, get into the home with the iTV(as Data speeds increase), and in the mean time, start showcasing/marketing/advertising Apple as more of an educational company as Apple indirectly displays these days. If Apple starts showing how their Macs make you a better student in the classroom(NOT OUT of the classroom), their stock will go up. Apple is in so many Universities & Colleges these days, and the general public never sees the success story behind. They need to do this marketing right - because Apple's coolness is fading... to now a 'cool' scholar. Apple needs to market the "scholar" part more while showcasing new products that make them remain "cool".