Today a source at Apple disclosed that the new iWatch concept would be a Bluetooth device.

Maybe you have seen the MicroCell from AT&T?  Well, the iWatch will treat an iPad from your service provider like it’s a MicroCell.  Any calls that come in will use the iPad as a gateway device and alert through the iWatch.  This will happen if it’s a carrier call (typical cell phone call), FaceTime, or any other software that chooses to use it (Skype).  The watch will display Instant Messages and notifications as well.  Your wired headset (EarPods) will be able to plug in to the iWatch so you can turn them in to a hands free set if you choose.  The link between the iPad and the iWatch will use Bluetooth 4.0 to connect, but if a high bandwidth function is needed a WiFi connection to the tablet will be created on demand.  This will allow for the battery in the iWatch to last all day.

There is still no word on a release date, but I am hopeful that this will be a sooner, rather than a later prospect.