Right. The fact that the smartwatch market is currently small doesn't exclude the possibility that it will grow huge, as happened with the smartphone market.

But if we want to continue with the analogy, there are other key differences between the Apple Watch and the early iPhone. I'll point out two.

First, even with the first-gen iPhone's feature omissions (its most commonly cited feature omission? No physical keyboard), the iPhone made the immense utility of the smartphone immediately obvious to most people who used it. Many people loved it. By contrast, the reaction to smartwatches from early adopters ranges mostly from cool to lukewarm.

Second, the first iPhone differentiated itself by nailing features that mattered most to most people. Compared to its leading competitors, the iPhone has 8 hours talk time vs 5 hours, 4+ GB memory vs 64 MB, 2 MP camera vs 1.3 MP, Wi-Fi vs no Wi-Fi, twice the screen size, built-in iPod functionality, etc. Nothing really came close in terms of its core features. The glaring feature omissions people complained about (no memory card slot, no physical keyboard (!), no third-party apps, no copy & paste) either turned out to be inconsequential or were obvious ways to make a great product even better. By contrast, the Apple Watch failed to identify key features that make it categorically better than the competition, and people are scratching their heads trying to think of "glaring omissions" that could make the smartwatch more essential.

The Apple Watch might have a future yet, but comparing it to the iPhone really doesn't work out in the Watch's favor.