Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Could This Be What Apple's iWatch Will Look Like?

There's ultimately one major concern that haunts Apple (NASDAQ: AAPL  ) stock, dooming it to a paltry price-to-earnings ratio of just 13: uncertainty about the company's growth potential. When you're already the world's most valuable publicly traded company, moving the needle isn't easy. Fortunately, however, it's looking increasingly more likely that Apple will be launching an iWatch -- a product in a hot new category with potential to help Apple hack into new growth opportunities in the coming years.

What is the iWatch?
Probably the best way to imagine the potential of Apple's rumored iWatch is to look at the concept designs by Argentine design student Tomas Moyano. He imagines the new gadget as a lifestyle device with many different uses.

iWatch concept design by Tomas Moyana. Images used with permission.

The grooves in Moyana's concept design allow for multiple looks with different bands, clips, necklaces, or anything accessory makers come up with to fit to the grooves.

iWatch concept design by Tomas Moyana. Images used with permission.

While it's likely that Apple's actual iWatch will differ from Moyana's concept design, Moyana has done an excellent job of capturing the potential of a wearable device from Apple. Investors shouldn't think of the device as simply a watch that connects to their phone. Instead, it will likely be a lifestyle device with thousands of uses thanks to the iOS ecosystem and third-party developers.

Though details about the iWatch are still scant, rumors suggest the device will be available in both a 1.3-inch and 1.5-inch display, sport biometrics and other sensors, use iOS, and have four to five days of battery life. And in a surprising recent twist, the well-connect KGI securities Apple analyst Ming Chi Kuo says he thinks the high-end versions of the iWatch could cost more than $1,000.

The latest evidence
Yesterday MacRumors uncovered even more evidence that the iWatch is, indeed, among the new product categories Apple CEO Tim Cook has promised in 2014.

The company has been expanding its trademarks on "Apple" to also cover jewelry and watches in many regions.

MacRumors Editor in Chief Eric Slivka explains:

While some of Apple's trademarks on the "Apple" name have previously included some goods from Class 14 [a category that broadly includes jewelry, clocks, and watches], the company is now broadening and cleaning up its trademark applications in those areas.

Notably, however, Apple hasn't trademarked the company name under Class 14 in the U.S. yet.

Why investors should care about the iWatch
Though it's probably impossible to put a reasonable estimate to the potential of Apple's iWatch on Apple's business, it hasn't stopped analysts from throwing darts blindfolded. Ming Chi Kuo estimates Apple can sell about 5.5 million units this year and as many as 50 million next year. His scenario translates to about 10% plus revenue growth in the first year of iWatch sales. Morgan Stanley analyst Katy Huberty came up with a similar estimate of the impact of an iWatch on Apple's top line, although by different means.

At the very least, investors shouldn't ignore the fact that Apple is entering new categories. There are real implications for Apple's business -- and these implications are likely to be positive, given the company's proven track record of product launches. While analysts play the guessing game, Apple investors can at least take comfort in the fact that an iWatch at least will likely not only limit downside opportunity for Apple's business but also provide upside opportunity; these are the benefits of a conservatively valued stock with business catalysts in sight.

The best way to invest in the wearable tech revolution
The rumored iWatch will almost certainly have huge implications for investors. One hundred of Apple's top engineers are said to be busy building it in a secret lab. And Kuo's optimistic expectations for the device in 2014 and 2014 are just the beginning. An ABI Research report predicts 485 million iWatch-like wearable devices could be sold over the next decade. Fortunately there's a way for you to invest in this revolution today, for just a fraction of the price of Apple stock. Click here to get the full story in this eye-opening new report.

Read/Post Comments (7) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 21, 2014, at 10:39 PM, Zendwell wrote:


  • Report this Comment On April 21, 2014, at 10:48 PM, millsbob wrote:


  • Report this Comment On April 22, 2014, at 1:11 AM, skippywonder wrote:

    Yes. If Apple had designed it in the 90's.

  • Report this Comment On April 22, 2014, at 3:52 AM, Kfury wrote:

    So basically a combination of the Moto 360 and the Misfit Shine?

    I think something softly rectangular with a curved screen is much more likely.

  • Report this Comment On April 22, 2014, at 8:21 AM, bshamblin wrote:

    A round screen seriously compromises the ability to display text.

  • Report this Comment On April 22, 2014, at 4:45 PM, TMFDanielSparks wrote:

    Great thoughts everyone. What do you think about the fundamental idea of the concept? a "lifestyle device" with interchangeable bands (or anything accessory makers decide to make)? I think this part of the concept could be spot on. But who knows?

  • Report this Comment On April 23, 2014, at 7:29 AM, JeffKLass wrote:

    It seems like "Argentine design student Tomas Moyano" is angling to get a design job at Apple. Unfortunately for him, putting out this kind of overdone speculative nonsense will only turn them off completely. One wonders what kind of weird psychological processes drive some people to put out this kind of silliness with respect to Apple's products. No one seems to be speculating about Samsung's future products, and why is that?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2923172, ~/Articles/ArticleHandler.aspx, 8/28/2015 2:21:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Daniel Sparks

Daniel is a senior technology specialist at The Motley Fool. To get the inside scoop on his coverage of technology companies, follow him on Twitter.

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/27/2015 4:00 PM
AAPL $112.92 Up +3.23 +2.94%
Apple CAPS Rating: ****