Apple, Inc.'s iWatch -- No Longer Just Speculation?

iWatch rumors have turned up the heat. The details on Apple's smartwatch are growing.

Jun 23, 2014 at 1:15PM

Toward the end of last week, the Apple (NASDAQ:AAPL) rumor mill took iWatch speculation to a whole new level. But the latest rumors about Apple's alleged smartwatch didn't come from Apple fan blogs. Instead, the central sources were The Wall Street Journal and Reuters

What are the new reports saying?
On the product's timeline (citing sources familiar with the matter), both Reuters and The Wall Street Journal predict mass production for the iWatch to begin within the next few months. And a launch will come as early as October, they estimate.

On its form-factor and hardware, contrary to early speculation that the display would be round, Reuters is asserting that the iWatch will be produced with a surprisingly large 2.5-inch "slightly rectangular" display. The Journal still says the device will come in multiple screen sizes.

iWatch concept design (as seen on the right) shown next to iPad Air, iPad mini, and iPhone 5s. Image source: 9to5mac, used with permission.

"The source added that the watch face will protrude slightly from the band, creating an arched shape, and will feature a touch interface and wireless charging capabilities," said Reuters' Michael Gold.

And probably most interesting of all among the newest details of the alleged watch is that the Journal says its sources claim that the iWatch sports "more than 10 sensors to track and monitor health and fitness data." Chinese website Laoyaoba (via GforGames) asserts that some of the iWatch biometric sensors will even monitor complex health metrics like blood pressure and blood glucose.

The Journal says a contact from one of Apple's component suppliers is predicting Apple will ship 10 million-15 million smartwatches by year-end.

How big is the opportunity?
While the market for smartwatches is small today, the nascent segment is ripe for more rapid adoption -- especially if Apple gets into the race. A number of industry research reports suggest the market is about to take off. NextMarket Insights, for instance, predicts annual shipments will grow from a total of 15 million smartwatches this year to 373 million annual shipments in 2020.

But due to Apple's enormous size, it's going to take a massive success to move the needle. The iWatch business will need to become comparable to the iPad or Mac business in order to meaningfully impact Apple's lucrative bottom line. With a $550 billion market capitalization and $37 billion in earnings in the past twelve months, the iWatch will need to be a blockbuster success for the device to impact the market outlook for the business.

Of course Apple has an excellent track record of entering new product categories, making the success of the Apple-branded smartwatch fairly likely. The last two major new products Apple launched were the iPhone in early 2007 and the iPad in early 2010.Can the so-called iWatch help Apple repeat history?

An investment opportunity in this hot new segment
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Daniel Sparks owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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