Kuo cites the lack of maturity among wearable devices in the market, as well as a major changes in iOS, as the reason for the 2014 launch. Previously, it was widely speculated Apple would release a smart watch by the end of 2013.
Apple may not have adequate resources to develop an iWatch version of iOS because it may require big changes to iPhone and iPad iOS this year. In addition, wearable device components aren’t mature. For these reasons, we think mass production of the iWatch is more likely to begin in 2H14, not 2H13 as the market speculates.
Kuo believes the watch will use a 1.5-inch to 2-inch display, and will draw from iPod nano components like the processor and touch screen.
iWatch panel to be 1.5-2.0 inches, and likely to be made by Japanese or Korean supplier. We think a 1.5-2.0 inch panel suits watch applications best. The reason for choosing Japanese or Korean suppliers is that they enjoy closer cooperation with Apple, hence are more likely to become suppliers for Apple’s new products.
iWatch may use iPod nano’s GF2 touch technology and AP. Currently, the iPod nano uses the same GF2 touch technology as used by the iPad mini. Since the size and computing ability requirements of the iWatch are similar to those of the iPod nano, we think iWatch will use iPod nano’s GF2 touch technology and AP.
Finally, Kuo believes that integration with iOS devices, as well as biometrics will be key selling points.