Knowing how Apple is working it is clear: Everything is possible.

But! Apple has not the reputation to be an early adaptor. Especially concerning the hardware components.

And in general: The Smartwatch of today tryes to be a smartphone on your wrist. But I doubt that this is what people really need.

A smart low power (POET?) processor, a reliable on chip BT or WLAN connection, some (on chip) sensors + a low power always on display (eInk!) should be perfect. Take a look at the pebble https://getpebble.com/
and shrink it with POET! Or watch what FES is deveoping, highly interesting what trends they are setting:
https://www.youtube.com/watch?v=FHgCe0l4r0c wearble and useable!

I am sure Apple will follow, using POET - but I guess it will be later...