Is Apple Introducing a Larger iPad -- or an iWatch?

Apple  (NASDAQ: AAPL  ) CEO Tim Cook has continued to tease at new product categories next year. The most likely candidate would be an iWatch. Investors may not necessarily consider a larger iPad as a new product category, but that could also be in store for 2014 as well.

Recent rumors suggest that Apple has already tapped Quanta as the contract manufacturer for a larger iPad featuring a 12.9-inch display, a device that could very well be branded the "iPad Pro." Mass production is expected to begin in the second half of 2014, which lines up with a possible fall launch. A larger tablet would inevitably target the enterprise and education markets.

The iWatch is still reportedly up in the air, with Quanta and Foxconn competing for orders, among other manufacturers. Component yields are still low, and mass production could begin as early as the first half of 2014. Apple has an opportunity to lead the burgeoning wearables trend, especially as device consolidation takes place much as it did in smartphones.

In this segment of Tech Teardown, Erin Kennedy discusses Apple's rumored new product lines with Evan Niu, CFA, our tech and telecom bureau chief.

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