Migicovsky explained that Apple's product is trying to appeal to the luxury end of the market.
"They are very focused on being the Rolex or the (Tag Heuer) of smartwatches. On the other hand I think we are trying to be the Swatch of smartwatches," he said. "We are building something that's fun, a little bit more colourful. It's affordable. At the core, it's just a different type of watch."
Read MoreApple's luxury watch will become obsolete: Tag Heuer CEO
Migicovsky's comments echoed those of another wearable tech developer.
Earlier this week, the CEO of Fitbit, James Park, said the Apple Watch has had "no material impact" on sales of the wearable activity tracker. Park added during a conference call with investors that Apple and Fitbit serve "very different segments" of the market, as reported by the U.K.'s Guardian newspaper. Fitbit's revenue has grown 168 percent year-on-year, according to its third-quarter earnings report.
The smartwatch market is still very young, and has not penetrated much of the market. According to a report by Kantar Worldpanel ComTech, published last week, only 3 percent of the adult U.S. population owns a smartwatch or smartband.
This could indicate that there is a lot of potential for smartwatch developers to compete and grab market share, but the report also points out that there are a variety of barriers to smartwatch purchases.
For instance, 41 percent of consumers surveyed for the report thought smartwatches were too expensive, 29 percent did not think a smartwatch would be useful and 33 percent said their phone does everything they need.