As product names go, iWatch is every bit as obvious as iPhone was. Apple would desire it for exactly the same reason: it clearly describes the category it is about to disrupt, and it echoes all the i-goodness that came before it. It’s a name that single-handedly does an awful lot of the heavy lifting for the marketing dept.
Second, securing the iWatch name may require some fancy footwork. According to Bloomberg there are more than 50 companies that can lay claim to the name. The biggest one of the bunch is Swatch, which has been marketing a product called iSwatch since 2009. Swatch is already making noise that the name iWatch will cause confusion in the marketplace.
It will be easier for Apple when it comes to light that “iWatch” isn’t a product but an OS/platform.