Watch, even if it ends up eating the whole current market, but not creating new one, is a failure by Apple standards. Unless Apple is going to branch out and become company like Samsung, that makes everything from watches, to nuclear power plants. Apple success story was never about big portfolio of products - they were always about few products, but extremely focused and creating whole new markets for them.
They can still be very successful company without that. But not necessarily as one of the world most valuable companies.
It was so obvious that Apple should be entering the smart phone market with a combination iPod + phone that people were already coining the name iPhone 3 years before it was introduced.
What market are you seeing with the clear growth trajectories that the cell phone had by 2002 that Apple should enter within the next 5 years?
they should provide a cloud on which you can use Metal compute
In fact Apple Watch’s revenue is projected to surpass that of the entire Swiss watch industry this year.
Even if it doesn’t “kill” the existing category, I’ll say they did a fantastic job carving out the smartwatch category.