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Why Apple Inc. Needs Its iWatch Sooner Rather Than Later

By Evan Niu, CFA and Erin Kennedy – Mar 21, 2014 at 10:00PM

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Google makes its official foray into smartwatches with Android Wear, a version of its mobile operating system tailored specifically for the new devices.

Earlier this week, Google (GOOGL -2.83%) officially announced a new version of Android that will be specifically tailored for smart watches, called Android Wear. This represents a direct move from the search giant into the market of wearables outside of its Google Glass project. But with investors widely expecting Apple (AAPL -1.23%) to launch its iWatch later this year, as CEO Tim Cook has consistently promised to enter "new product categories" in 2014, how might Android Wear affect the iWatch's prospects?

In this segment from Friday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu look at the battle between Apple and Google's Android over the nascent smart watch and wearables market. With Android as the first mover on this, it may establish a lead with developers and apps, and the diversity of Android smart watches versus Apple's likely one or two iWatch models may represent another popular advantage among consumers.

Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. Evan Niu, CFA has the following options: long January 2015 $460 calls on Apple and short January 2015 $480 calls on Apple. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. 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.

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