A peripheral is a hard thing to displace

I chuckled going through this review of the Moto360 versus the Apple Watch because it mostly misses the main point. The Moto is to my eye a more appealing watch esthetically that is priced more aggressively. But it is still going to lose on iOS and not because Motorola will get out marketed but because of the fact that the Apple Watch (even after WatchOS 2 comes out) is primarily a peripheral for the iPhone-- one that places a differently sized display in a more convenient location for certain tasks and which brings a microphone and a health sensor to the wrist. Most of the magic will continue to come from the guts of the smartphone for quite some time: connectivity to the rest of the world and dedicated processing to do the really interesting stuff.

More to the point, as the owner of the platform Apple can just continue denying deep integration to third parties who make hardware (see what they did to the Pebble Time) at least until they determine that the watch is not strategic (which I highly doubt) in which case they might choose to treat it as a truly dumb peripheral.

This kind of platform power got Microsoft in trouble in the late 1990s but it doesn't seem to be even on the radar of regulators today (with the exception of content businesses like the book publishers). One day it may be but for now if I were in the "stuff on the wrist" business, I'd either focus on amazingly compelling (and differentiated) functionality or Android (not that the problem won't exist there as well) rather than trying to fit within the Apple walled garden.