I tried to use the pedometer functionality on the watch. It was very inaccurate. Just sitting on a couch checking the time racked up steps. Also just checking the notifications on the watch registered steps. I used the data from the watch to compare against my Fitbit One and found a difference of more than 20%.
Yes, phone is dead accurate and the watch is not. I noticed the watch counting steps when I was driving. I immediately never used it on the watch again