$249 is a lot of money - you're talking the cost of a subsidized high-end phone for something that has less functionality. My intuition tells me smart-watches wont sell in big BIG numbers unless:

- It's a phone, therefore it can be subsidized by the carriers

- It almost does everything a smartphone can, including having a lot of screen real-estate, but only costs ~$250 unsubsidized. Perhaps like a flexible iPod touch that wraps around your wrist

If someone can come up with a $200+ wrist-mounted device that sells in the millions but doesn't meet the same level of functionality as a smartphone then I'll gladly eat my Fitbit.