The newly rumored Apple (NASDAQ:
) wristwatch is gaining some steam now that another report claims
the device is in development. According to
, as many as 100 product designers are working on a wearable
computer for Apple that "may perform some of the tasks now
handled by the iPhone and iPad."
Based on the size of the team (which includes managers,
marketers and engineers from the iPhone and iPad teams),
Bloomberg's sources believe that the device has gone beyond the
experiment phase and is officially in development.
This could be the product that Apple will use to fill the void
until the next iPhone and iPad are released. While there were
rumors that the company would release an iPhone 5 upgrade this
quarter, many analysts agree that Apple is likely to wait until
late summer or early fall.
In fact, some analysts estimate that Apple's biggest products
will not begin to launch
until the third quarter
. Without any fresh items on store shelves, the Cupertino,
California-based tech giant would have to rely on its existing
lineup to drive future sales.
are not impressed
with the speculative concept of the iWatch, which sounds like a
cross between an iPhone and a wearable iPod Nano. Others argue
that the finished device should be unlike anything the world has
ever seen before.
Even if that were the case, it could be difficult for the firm
to persuade consumers to buy an iWatch. Once the cool factor has
subsided, Apple will be left promoting a device that is contained
to its user's body. This is drastically different from the
handheld, pocket-friendly items Apple currently promotes.
If the Mac maker intends to move in this direction, investors
must wonder when the existing product lines will be terminated.
The company must be aware that the iPhone will not survive if the
iWatch proves to be a vastly superior product. Some consumers may
prefer the traditional smartphone format, but as the company's
most loyal customers switch to the iWatch, sales of the iPhone
In order to be a positive replacement for the iPhone, the
iWatch must carry a larger retail price or offer superior
margins. If the margins are smaller, Apple would have to sell
more units than the iPhone just to maintain its current level of
That might be the goal, however -- to build a device that can
eclipse the iPhone, regardless of the margins.
Other rumors suggest that the iWatch will be more of an
expensive toy that can enhance the functionality of existing Macs
and iDevices, allowing Apple to maintain the iPhone legacy.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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