It does support both actually. Apple Watch supports Bluetooth Headsets [2] and untethered music playback using the 2GB internal memory [1].<p>[1] <a href="http:&#x2F;&#x2F;m.imore.com&#x2F;how-add-apple-music-playlists-your-apple-watch" rel="nofollow">http:&#x2F;&#x2F;m.imore.com&#x2F;how-add-apple-music-playlists-your-apple-...</a><p>[2] <a href="https:&#x2F;&#x2F;support.apple.com&#x2F;en-us&#x2F;HT204218" rel="nofollow">https:&#x2F;&#x2F;support.apple.com&#x2F;en-us&#x2F;HT204218</a>