“After three long years of rumors, Apple finally struck a deal with China Mobile,” Mukesh Baghel writes for The Motley Fool. “Rumors of a cheaper iPhone started circulating more than two years before Apple finally launched the iPhone 5c. Now there’s a new rumor, and when it materializes, it will have a bigger impact than the partnership with China Mobile or the iPhone 5c: the iWatch.”
“Speculation about the iWatch started gaining steam in early 2013, when both The New York Times and The Wall Street Journal reported that Apple is experimenting with iOS-based watches made of curved glass,” Baghel writes. “The rumors became hotter when Bloomberg reported that Apple had hired several new wearable computing experts to work on such a device. With 2014 well under way, that team is believed to have grown to at least 200 people, according to MobiHealthNews‘ Brian Dolan.”
“Investors tend to underestimate the potential of Apple’s new categories,” Baghel writes. “However, the iWatch has the potential to be a massive growth driver for Apple. Morgan Stanley projects that the iWatch will generate a whopping $17.5 billion in revenue in the first 12 months it’s on the market. This is more than what the iPhone, at $2.5 billion, and the iPad, at $13 billion, generated in their first 12 months on the shelves, combined.”
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