You are overlooking that the watch screen has to be on all the time. Well, perhaps not a must but it is more desirable that way. I do not think LCD can compete on that ground even against S4-level AMOLED - of course on black watch face with white lettering. (burn-in notwithstanding XD )
Maybe the watch OEMs should add that feature where the watch is watching you in order to determine when the screen has to be on. that would be far more efficient whether it's OLED or LCD.
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