Classic Apple moment?
Time to call a spade a spade: smartwatches and activity wristbands are niche products riding on hype. If past is prologue, then this is a classic Apple moment. As it did in 2001, 2007, and 2010 -- Apple the hero comes in and adds focus and coolness to a category with half-baked products. iWatch, if it happens, will be the company's biggest challenge since the iPhone.
But I still think smartwatches will be huge -- they're just finding their way. Even if they're ultimately just used for notifications and tracking health data, that's still a big deal. We use our smartphones for way too much. I'll gladly outsource notifications, GPS, geofencing, check lists, calendar reminders etc to a smartwatch that's just a glance away. There are too many kinks now, but I think in two years we'll be having a more positive conversation about smartwatches.