> and they're acquiring a company in a market where there is a clear leader (Apple)

If you have to spell it out, they might not be the clear leader. The Apple watch is missing a glaring feature - compatibility with Android phones (Android Wear has the reverse issue). That alone makes it the Apple watch a non-starter for a large number of people with smartphones, and "people with smartphones" is the target market. Fitbit and Pebble are the biggest two smartphone OS-independent smartwatch producers that spring to my mind.