Is this the view of the general public? That Apple is doomed if they don't release iWatch or whatever that's bigger than the iPhone/iPad?
On the other side, different analysts say both the watch market and the TV market are too small to matter, so Apple is also doomed if they do. That the MP3 player, smartphone and tablet markets were also "too small" before Apple released their products hasn't entered their mind.
Secondly, the portion of that market that buy "techie" phones as opposed to what's effectively a variation of a bracelet is vanishingly small, so the size of the overall watch market is irrelevant.