According to the report, the Bluetooth watch would debut sometime in the first half of 2013.
Consumers have previously used the sixth-generation iPod Nano as a watch, with third parties producing wristbands for the product, News.com.au reports.
According to the report, TechCrunch writer Jordan Crook, however, said he was taking the news with a grain of salt.
He pointed out that if the iPhone maker is manufacturing a watch, it would be quite a while before we see any real evidence of it.
He also said that there's no proven market for smart watches yet.
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