If it watched the heartbeat all the time, it would chew up battery quickly. What Apple says is:
"The custom heart rate sensor in Apple Watch detects your heart rate during workouts. When you’re not in a workout, Apple Watch uses an accelerometer, ..."
They also say that while movements are tracked all day, cardio is a special case:
"There’s also a separate Workout app for dedicated cardio sessions. "
All of this sounds like the heartbeat sensor is enabled only when you tell it you're doing a workout. Not all the time.
Here is what Apple says.
.Apple Watch web site said:The wrist is a convenient area for collecting data about your physical activity, a task Apple Watch is designed to perform throughout the day...specially designed sensor that uses infrared and visible-light LEDs and photodiodes to detect your heart rate.....
Apple Watch Press Release said:...Apple Watch uses the accelerometer, a built-in heart rate sensor, GPS and Wi-Fi from your iPhone to provide a comprehensive picture of your daily activity....
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