The report says Apple is using special miniaturized sensors and processors designed to keep the iWatch slim and small. China Times says Apple plans to release the watch in the second half of 2014.
News on an iWatch first broke in February of last year when the New York Times reported that Apple was working on a wearable device made out of curved glass. Since then, reports from 9to5Mac and the New York Times have said Apple is focusing a lot on fitness tracking for the new device.
9to5Mac also reported last month that the next version of the iPhone operating system, iOS 8, will include an app called Healthbook that's designed for fitness tracking. It's likely Healthbook will sync with the iWatch.