"By creating a new user interface tailored to its tiny display, Apple has produced a smart watch that mass-market consumers will actually want to wear," said Daniel Matte, a Canalys analyst.

"The sleek software, variety of designs and reasonable entry price make for a compelling new product. Apple must still prove, however, that the final product will deliver adequate battery life for consumers."

Industry insiders segment the wearable market into "smart bands", which are capable of running third-party applications, and "basic bands", which are not.

Many market observers have asked why consumers would want a smart band at all, demanding compelling-use cases.

Seeking to address these concerns about its new wearable, Apple has demonstrated a variety of use cases across health and fitness, personal communication and other areas, including mapping for walking navigation, workout and activity tracking, and mobile payments.

Meanwhile, low-cost Chinese vendors are increasingly playing a role in the market for wearable bands. Xiaomi Corp has attempted to dramatically lower the price of basic bands with its Mi Band.

Xiaomi's band sells at 79 yuan each, one of the cheapest products from mainstream vendors.

Analysts believe Android Wear, an operating system designed by Google for smart watches and other wearables, will quickly increase its market share once it enters China. Most of the nation's hardware makers are using the Android system.