"We are more confident that Apple will be introducing the iWatch before the holiday season following WWDC's introduction of HealthKit, recent healthcare hirings, the acquisition of LuxVue Technology, and positive comments from Eddy Cue at the Re/Code Conference," he wrote.
"We expect iWatch sales to roughly track iPad unit sales — similar penetration rates would mean higher sales," he said. "iWatch might do better because the customer base is larger than when iPad launched and the ASP might be less. On the other hand, iWatch is the first product to be worn, which might not appeal to all users."
Apple's iWatch would be the company's first new major product launch since the iPad, and it would be the first product category launched under CEO Tim Cook. Apple is rumored to hold an event sometime in October to announce the product.