Technology

Apple Product Announcement May Include iWatch

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appleApple may not be the first person to come to market with brand new technology but they do have a knack for creating huge markets for their products. They did it with iPods in 2001, iPhones in 2007 and iPads in 2010. Now, they are likely to repeat that success in the wearable market. Wearables are an emerging market used to track people’s activity and health.

It is expected that Apple will introduce the iWatch, a wearable device, along with announcements about their new iPhones on September 9th. The event will be held in Cupertino, California and notices for the event have already been sent out. Apple declined to comment past “Wish we could say more.”

Other companies, like FitBit Inc, have made headway in the wearable market and global sales of activity trackers hit 13.6 million last year, this is about the number of iPhones being sold in just a month. So Apple could stand to give a huge boost to the market. This new device will also give a glimpse into the future of an Apple with Steve Jobs running the show. New company CEO Tim Cook took over almost three years ago and has been being pressured to deliver breakthrough products for the company.

An analyst with Piper Jaffray Cos, Gene Munster, said “How he’s perceived in the next few years will be decided in the next four months.”

The new iWatch will get an initial boost by being paired with the release of the new iPhone. This may also indicate how the company sees the product itself, as an accessory item rather than a standalone category. To compare, when the iPad was announced in 2010 there was a special event specifically for that product.

It is also predicated by analysts that the release of a wearable device may not make much dent in the company’s balance sheet. While they may sell between 30 and 60 million devices for around $300 each, this will only generate $9 billion in sales. When compared with the $180.2 billion the company has already amassed for the current fiscal year, this is not much of a splash.

Still, the anticipation of a new product always gives Apple shares a boost. Shares closed today at a record $102.25, this year shares have seen an increase of 28%.

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