Apple Reportedly Testing 1.5-Inch Display for 'iWatch'
iPhone Download Blog

Apple is testing tiny screens for its rumored smart watch, according to reports from Taiwan and Japan. Apple’s technologies chief Bob Mansfield along with a team of 100+ engineers are reportedly evaluating 1.5-inch screens based on OLED (Organic Light-Emitting Diode). Apple originally wanted to go with a 1.8-inch display, but Apple has decided to go with a smaller display that uses one-glass-touch sensors, allowing a thin design for the product.

What Else You Need To Know

  • Previous reports claim that Apple's iWatch would be able to make calls, check caller ID, relay map coordinates, display notifications from the user's phone on the watch's display, and provide health-related data.
  • Tech companies also working on smart watches include Google, LG, and Samsung.

Other sources

OLED is important because it doesn’t require a backlight so it’s more batter-friendly than a liquid crystal display (LCD). - Christian Zibreg, iPhone Download Blog  
Apple Insider
Rumor: Apple testing 1.5" OLED displays for wearable 'iWatch'
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Business Insider SAI
Apple Is Experimenting With 1.5-Inch Displays For The 'iWatch' (AAPL)
iPhone Hacks
Rumor: Apple made a 1.8″ iWatch, but didn’t like it, so now they’re testing a 1.5″ model
iPhone In Canada Blog
Apple Rumoured to Test 1.5-inch OLED Display for Smart Watch