Apple Inc. (NASDAQ:AAPL) needs to come up with an iWatch very soon – if not then there’s a good chance that the company might lose its innovative edge to rivals, says a report from CNBC citing an analyst. Managing director at Global Equities Research, Trip Chowdhry said, “They only have 60 days left to either come up with something or they will disappear,” and added that it would take years for the company’s “130 billion in cash to vanish, but it will become an irrelevant company … it will become a zombie, if they don’t come up with an iWatch.”
Wearable space getting overcrowded
Chowdhry also noted that Apple Inc. (NASDAQ:AAPL), apart from losing its innovative edge, could also miss out on the massive opportunity that is available in the growing wearable segment. Despite such harsh words, the analyst gave an Overweight rating to the iPhone maker with a price target of $800.
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Chowdhry’s comments might sound a bit a harsh, but one has to agree, to some extent: the reality is that, in a very short span of time, the wearable space has witnessed a lot of action. Recently, Google Inc (NASDAQ:GOOG) announced that it would come up with a watch as early as this summer. Also, devices that track activity from FitBit and Jawbone have been very popular among consumers.
Everyone looking to Apple
Chowdhry’s words, though extreme, do share similar sentiments of other analysts. Rob Cihra, a senior tech analyst at Evercore Partners, notes that the competition is primarily from companies like FitBit and Jawbone as they are the pioneers of such devices, and are creating an ecosystem around these wearables, and Apple Inc. (NASDAQ:AAPL) “should certainly want to play in that.”
Numerous reports and rumors are available on the web detailing the expected specifications and release date of the iWatch. Analysts who regularly cover Apple Inc. (NASDAQ:AAPL), believe that the company will come out with a wearable product in 2014. Experts believe that a wearable would be a good complement to the company’s ecosystem. Everyone is looking to Apple to come out with some product, in the segment, this year, said Cihra, who has an Overweight rating on the stock with a price target of $670. Wearables “need innovation and creativity,” and Apple is expected to deliver something like that.