The internet is a buzz with prospects of Apple making an iWatch. And now, analysts are saying it’s not a good idea: watches have too little margin, their too competitive, and it’s just not a big enough deal for Apple.

Apple will be wise to ignore them.

Have you heard of the iPod? They’re not selling like they used to, but these little music players were once all the rage. They’ve mostly been replaced by phones, but in fact, many people, particularly exercise enthusiasts, still use theirs. Apple once made an iPod that even had a watch feature built in and it was so popular that people starting making their own wristwatch bands for it.

What could Apple do to revitalize its iPod segment? Why it could add useful features to the iPod. The iPod could have a built in wristband and receive information from your phone. It could start and stop music from your phone and pause when a call comes in. It might show you your heart rate and read outs from your GPS (all in an app in your phone). Wouldn’t this be better than an iPod? Might you consider upgrading your iPod shuffle or nano for one with these nifty features?

For some reason, all these analysts have missed this simple fact. An iWatch is a new segment they say. It’s building a new eco-system. Is there even a market for it? Since Apple has already made an iPod that worked like a watch, I am dumbfounded at how no one has noticed that this isn’t a new segment at all.

Apple has built up a reputation for life-changing devices and the stock market is expecting nothing less. That’s the argument given why Apple shouldn’t make an iWatch–they’ll disappoint the stock market. Except it’s ridiculous. It’s good business to make good products, even if they’re not ground breaking. The lowly iPod was the first step in remaking Apple; it seems almost sad that it’s all but forgotten now. Good thing Apple hasn’t forgotten it.