I don't see the Apple watch as being much of a threat. A good Swiss watch will work just as well five years later as it did new. It won't go obsolete and it won't need charging after five hours of use.
Within three years the iWatch will probably need a new battery, which probably will not be easily replacable. It will quickly grow obsolete as watches with better battery life and better features come out.
And we all know that you never buy an Apple 1.0 product.
Besides, people would look silly if they treated their watches like a Dick Tracy watch or had to hold their wrist up to their ear to hear Siri.
I wear a watch that is a far better watch than the iWatch. I never have to charge it (solar) and the only time I need to set it is to change the time zone or daylight savings since it sets itself. If it breaks or I lose it I'm not out several hundred dollars and it will last me years. I tend to be hard on watches too. It does a supurb job telling me the time and date. It's water proof and I never have to take it off. I also don't get distracted by it. It doesn't beep or flash messages at me, talk to me or anything else. I don't have to update the firmware or worry about security issues. If I want to pay by phone it takes me 2 seconds to remove my phone from my belt pouch to pay for something. I don't have to turn my wrist into contortions for NFC or for something to read the screen.
Years ago I used to have watches that had features like a calculator or that could store a phone book and other stuff. With a phone I no longer need these features which were awkward to use at best due to the small size of the watch.
If I'm going to make a phone call I'll hold my phone. It will be a lot easier to hear and will be clearer for the person at the other end. If I'm on the phone a lot I'll get a bluetooth headset.
There are a lot of smart watches out there and none of them seem to be taking the world by storm. The iWatch is not all that different than many of the other watches out there other than the fact that it's more expensive and made by Apple. In some cases it's obsurdly expensive. $10,000 for a gold iWatch with well under $1000 worth of gold? It's just asking to be stolen like somebody wearing a Rolex. Unlike a Rolex, though, in 5 years time it will be worth far less. It's not something you'll be able to hand down to your children and grandchildren. It won't last 20+ years like a good watch will.