When Apple first shipped the Apple Watch earlier this year, its software wasn't capable of Activation Lock—the technology that Apple uses to prevent someone from activating a lost or stolen iOS device without first validating ownership.
Activation Lock is a feature that first appeared with the introducion of iOS 7. It works by preventing an iOS device from being activated after being reset without first disabling Find My iPhone. By enabling Find My iPhone, a user is effectively enabling Activation Lock, therefore providing a layer of protection against would be thieves.
When we first reported that Activation Lock didn't ship with watchOS 1, many users were perplexed. Why wouldn't Apple include such a feature in its popular wearable? After all, Activation Lock has been credited with reducing iPhone thefts by as much as 50% in some regions.
While we never were told exactly why Activation Lock didn't ship with watchOS 1, chances are that it just wasn't ready at the time. With watchOS 2, however, things have changed. As Apple promised back at WWDC 2015, Activation Lock is included with its latest watchOS update...and it works.