I think Apple is spot on marketing Apple Watch as a fashion accessory that happens to function as a smart watch, and not the other way round. Look at the fashion heavy weights pulled in to push the product. This is only a start. I bet there will be another model coming soon to compliment this one.
Designers in fashion industry are dying to get into the tech fashion genre. Look at Tag Heuer doing a smart phone, Prada partnering with LG, etc. No one gets it right so far. And these players knew that they need to evolve over time to retain their market. Apple might change the industry totally, and/or create a blue ocean for themselves. Why else do you think they could attract a CEO to join them as SVP?