Investors continue to get closer and closer to Apple's (NASDAQ:AAPL) expected iWatch introduction later this year. There were three new rumors about the device hitting the news cycle this week.
First, LG Display is expected to be the sole supplier of an OLED display, but it's struggling to meet Apple's power draw requirements. Then, Reuters reports that Quanta will begin assembling the device in July, and that it will feature a 2.5-inch display and wireless charging. Furthermore, Apple is supposedly ordering 50 million units within the first year. Finally, The Wall Street Journal says the iWatch will come in multiple designs and will feature at least 10 different health-related sensors.
If that 50 million unit estimate is accurate, it would easily outpace the iPad's shipments in its first year. The iPad sold just under 20 million units in the first four quarters, making it Apple's most successful entry into a new product category to date. Tim Cook has cautioned investors not to pay much attention to these types of supply chain leaks, as they don't accurately paint the full picture. Furthermore, Apple frequently double orders components when yields are low, only to modify or cancel orders later as yields improve. For these reasons, investors shouldn't pay too much attention to that 50 million figure.
In this segment of Tech Teardown, Erin Kennedy discusses the latest iWatch rumors with Evan Niu, CFA.
(The relevant segment begins at 9:56.)
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Erin Kennedy and Evan Niu, CFA, own shares of Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.