Business Insider
The Apple Watch was inspired by the 2010 iPod Nano, according to the New York Times' Brian X. Chen.
"The watch, according to a former Apple designer, had its origin with a tiny iPod Nano Touch, introduced in 2010," writes Chen. "People attached a strap to the minuscule media player, and wore it on their wrist, listening to music while jogging."
Chen is talking about the 6th-generation iPod Nano, which had a tiny square face resembling the Apple Watch sans a strap. It looked like this:
People soon realized that one could make a DIY-smartwatch by slapping a band on the Nano. The result is something very closely resembling the Apple Watch:
Business Insider
Apple has clearly made an effort to burnish the Apple Watch with a luxurious face, but the genesis of their smartwatch is completely evident.