Apple filed for this patent in July 2011.
The details of the this patent with the title "Wrist-worn electronic device and methods therefor" are matching with the speculation regarding a so-called iWatch smartwatch.
This iTime device can interact with Computers and Mobile phones.
According to the patent documents, the iTime's electronic wristband acts as a docking station for a device similar to the iPod Nano.
In one embodiment, the watch is able to receive a notification initiated by a nearby phone, then alert the user to the event through audio, visual or vibrations. Once alerted, the user has the option to take out their Phone or dive into the notification directly on the watch, whether it be onscreen or through audio output like system speakers or headphones.
Smart watches provided by Samsung and LG are already available in the market. But many people are eagerly waiting for a smart watch from Apple."