I shoot a lot of product photographs and can assure you that producing such an image with intermediate photoshop skills is not particularly difficult. About the only thing that may have been actually photographed was the rocks, although I'm not even so sure about that. The watch itself looks like an industry-standard, decent quality render and the sky likely pulled from some bank of stock sky images. There are imaging services that will take a real product and will scan, photograph, and reassemble a product in virtual 3D allowing a customer nearly infinite compositional options for their product. In fact, this is how it's possible to take a diamond ring image and put it on a billboard three stories tall. They don't just expand a 20Mb file!

"Wrapping" the watch around the rock is trivial, as is building the reflection in the (fake) water.

In fact, the reflection is clearly fake....and a poor job at that: note that the reflected sections to the right of the face clearly mirror an incorrect angle. Also note that for a chrome finish, none of the adjacent rocks are reflected in the band. It's also worth noting how the water covering the watch face is not clear, but black....like used motor oil. Does water really behave like that? But that's what you want; actual and real reflections of foreground matter would distract from the point of the image: highlighting the watch....and only the watch.

Generally, building such images in photoshop is preferred as each and every element and layer can be precisely controlled to maximize the impact of the product itself. Composition can be easily rearranged, exposures and saturation adjusted, and shadows precisely created.