Absolutely. But it doesn't look like they are any good at it, considering how the Apple Watch totally didn't eat the market of incumbents like Garmin at all (Garmin is almost drowning in money now that the Apple Watch has made it socially acceptable to spend high sums on wrist gadgets). The Apple watch excels in engineering, but the software environment is so focused on mainstream appeal that almost everybody has some niche interest that isn't served there at all. And those niches are tight: one might think for example that Garmin and Peloton are direct competitors in the field of home indoor workout bikes (Garmin via the Tacx Neo Bike) but in reality those serve very different markets with almost zero overlap. Apple misses all those niches because they are not only committed to ignoring niche features but also exert too much control on the walls of their garden that third parties won't rely on them as a platform.

That was my point: both of these companies have expanded well beyond their initial purpose and now overlap. If you look at their origins, there is no overlap at all.