The chip in the band can communicate with the chip inside the Apple Watch. This allows the watch to “understand” which strap is attached to it: branded or third-party.
Of the user-friendly use cases, the following are described: watchOS can dynamically change its interface depending on which strap is connected; can include various apps, such as watch, exercise app.
But in addition to that, the NFC chip can be used so that the Apple Watch can issue alerts that there is a third-party strap on the watch. And this can already cause discomfort.
Source: Ferra
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