Tim Bajarin:

When Apple introduced the Apple Watch last fall, I talked to people in the high-end watch market to get a sense of whether they viewed it as a threat in any way. What I heard was a bit surprising. They said Apple has created a completely new paradigm in watches, which will define what a “watch” will be and can do in the future. Most importantly, these sources told me that even the ultra high-end watchmakers are taking note. But they are struggling with how to respond given that the Apple Watch is not as much a watch as it is a wrist computer that could shift the role a timepiece plays in people’s lives.

Even though the watch may not sell as well as the iPhone, Apple did the same thing in that industry—it made the incumbents nervous because they were offering something completely new and different.