Another day, another Apple (NASDAQ:AAPL) iWatch rumor. This time, the Nikkei is reporting that Apple is finalizing specifications for its widely expected smartwatch. The device will reportedly feature a curved OLED display, collect health-related data, and allow users to read messages from their phones. Apple may also partner with Nike to integrate services since Nike has its established Fuel platform.

Industry sources estimate that Apple is targeting 3 million to 5 million units per month, which translates into 36 million to 60 million units per year. Even using the low end of that estimate, that level of volume would be wildly successful. For comparison, the iPad is currently Apple's most successful entry into a new product category. The Mac maker sold nearly 20 million units in the first four quarters of availability.

The real unknown is price. While the iPad started at the $500 entry-level price, no one knows where Apple will price the iWatch. Some analysts expect it to price as high as $1,000, which may be a challenge for mainstream adoption. Current offerings are priced around $300, so if Apple prices at a premium it may end up in the $300 to $500 range.

In this segment of Tech Teardown, Erin Kennedy discusses Apple's iWatch with Evan Niu, CFA.