The new iWatch may be used as a home automation gateway, which means it will allow users to control various functions within their houses(i.e., heating/cooling, lights, audio, video, etc.). So, its definitely much more than just an iPhone companion.
This technology is a photocopy of the apps used by the Philips and Nest to power the Hue lightbulbs and Nest Thermostat, as it allows users to control different functions like control lighting and temperature from simple commands on their devices.
Currently, there are two models of iWatch 1.3- and 1.6-inch 320×320 AMOLED screens, are rumored to be arriving at some point next year.