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Technology Stocks : Apple 3.0
AAPL 269.73+0.3%3:59 PM EDT

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To: spitsong who wrote (20)9/9/2014 5:39:45 AM
From: spitsong2 Recommendations

Recommended By
Frank Walker
MGV

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And then the big one: iWatch

I saved up 30+ URLs for this, as I believe it's important and I didn't want to post much in advance of Apple's big reveal, especially not on the crucial context of what it all means. On initial consideration(s), I figured this would be just another digital fitness accessory, but Apple has been dropping hints that it will be much more, and I started realizing the potential a couple months ago. First, the obligatory historicals:

Fortune | Apple here, with a voice message for Dick Tracy
Cult Of Mac | iWatch might make Dick Tracy’s 2-way wrist radio a reality

Engadget | iPod nano review -- as a watch
GigaOm | Why I stopped wearing my iPod nano as a watch (lots of good cautionary stuff for Apple here)

Cult Of Mac | Sweat sensor could make iWatch most personal device ever
c|net | Adidas adds new MiCoach to fitness tracker team
The Mac Observer | Apple Hires Former Nike FuelBand Engineers for Fitness-related Project
Forbes | Apple Chicken Fat Ad Suggests That iWatch Will Be Companion Screen to Fitness Devices
Apple Insider | Apple's 'Health' app gets M7 coprocessor step tracking in iOS 8 beta 3, adds new data categories

A few articles about the competitive landscape, and the opportunity that the fact that nothing out there now is much good presents for the first company to fill it with something excellent:

Cult Of Mac | Microsoft’s 11-sensor smartwatch will take on the iWatch in October
Wired | Android Wear Is Here, and It’s Ready to Rule Your Wrist
XConomy | Steve Wozniak on Galaxy Gear, Google Glass, & Future of Wearables
Today | My fitness band is making me fat: Users complain of weight gain with trackers
ABC News | New Samsung Smartwatch Won't Need Companion Phone
BGR | Apple rivals explain why they hope the iWatch is a smash hit

And then a bunch of speculation about what, exactly, the iWatch(es) could be:

GigaOm | Ex-Apple designer explains why it’s just a matter of time for the iWatch (Feb. 8, 2013)
International Business Times | Apple iWatch Could Rival iPhone, iPad In Popularity, Morgan Stanley Predicts
Forbes | One iWatch, Or Many? Apple Battles To Solve The Wearable
c|net | 4 'iWatch' alternatives Apple could unveil on Sept. 9 (it's almost like this writer peeped stuff I was writing here months ago)
ValueWalk | A recent report says Apple will release three versions of the iWatch including a version with sapphire crystal display

A different idea of what an iWatch could be, and how it could be launched:

CNBC | Apple poaches Swiss watch exec for iWatch launch
Forbes | iWatch Will Prove Apple As A Luxury Brand And A Brand Powerhouse
Forbes | Richard Mille's Million-Dollar-Plus Sapphire-Cased Watches
The New York Times | Tech, Meet Fashion

An observation about how the rumor mill sometimes works:

Mashable | Will Apple's EarPods Track Your Health? (May 1, 2014)
Mashable | Apple Biometric EarPods Were a 'Secret' Hoax (May 5, 2014)
Fortune | Forget the iWatch. Headphones are the original wearable tech (June 24, 2014)
PC World | Biometric headphones measure a wearer's heart rate (Aug. 14, 2014)

And the (um, sometimes self-fulfilling) obligatory caveats :

ZDNet | Apple's iWatch: Secrecy and the perilous game of predicting the future
PC Magazine | The Apple iTime Is Destined to Fail (by John C. Dvorak, *hack* *chortle*)

OK, time to circle back and start connecting dots.

First, what will the iWatch be, exactly? I share the belief with others that there will be more than one iWatch. But I've also suggested that a huge change between Apple 2.0 and Apple 3.0 will be in comprehensive partnering with other firms in developing products, firms with expertise in vertical markets where Apple need not tread heavily. Combine this with the four decision criteria I described in my first post to this board for the conditions under which Apple would release a product, and the logical conclusion is that while we may well see an Apple iWatch announced as early as later today, I believe it's equally likely that we will see one or more Apple partners release iWatch products for more specialized markets, now or later. Like fitness/sport (think Nike or Suunto) using HealthKit, fashion/status (think Michael Kors or Tag Heuer), etc. Folks, the iWatch is an ecosystem as much as a potential product, though of course it might also be one or more Apple-branded products.

This would seem to explain the fact that Apple is working on a new building adjacent to the announcement site; Apple's partners will need a venue to show off their own gear:
Apple Insider | Apple's mysterious 2-story structure at site of Sept. 9 event drives frenzy even further

Second, the Samsung watch that will not require a phone. Frankly, I don't see why a smart watch with phone capability would need to be tethered to a phone. It also doesn't need to be a Dick Tracy-type wrist-radio that you talk into and listen to. What if, instead, it was its own self-contained device. Which interacted with you in a way that did not require a 4" screen. Like, for example, it had a good voice interface as well as a small touch-screen display. I put forward in my last note on this subject that the iWatch will represent the fourth screen, where the first is the TV, the second is the desktop/laptop/iPad, and the third is the iPhone/iPod touch. It ought to have its own advancement in user interface to compensate for the ever-shrinking screen, which can be an improved Siri.

I believe this leads to a different way of thinking about the durable interface between person and device(s). Details can wait for a later date, I think.

Third, since not too many of us want to be talking and listening Dick-Tracy-style into our phone, what would be a better way to accomplish an improved voice interface to our iWatch (or iPhone for that matter)? Answer: wireless headphones that include a built-in microphone. My guess is that such a device would be a big part of the reason that Apple acquired Beats.

Fourth, the limitations of the small batteries that can be fit into a wrist device. That either forces the device to use very small amounts of power, or else can be charged more conveniently than by removing it to plug it in. A couple avenues:

The Los Angeles Times | Apple patent application details smartwatch wireless charging
DVice | Nokia patents 'Piezoelectric Kinetic Energy Harvester,' or a self-charging phone

The iWatch is going to be big business, folks, and a big part of the Apple 3.0 I believe we're seeing unveiled.
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