Apple Inc.: Apple Watch 2 Rumor Roundup

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Any hopes that Apple Inc. (AAPL) might follow the same yearly upgrade cycle with the Apple Watch that it does with its iPhones were dashed back in March. Instead of a new smartwatch, Apple offered up some new bands and a price cut.

Apple Inc.: Apple Watch 2 Rumor Roundup

Source: Apple

However, the smart money is on AAPL finally taking the wraps off the Apple Watch replacement in the fall. Here’s what we think we know about the upcoming Apple Watch 2.

Apple Watch S?

Will the second-generation Apple smartwatch be the Apple Watch 2, or the Apple Watch S? While the current model is in need of significant upgrades, it’s possible Apple could follow the strategy adopted with the iPhone and make every other release an “S” version.

In that case, the new smartwatch would look identical to the previous model, but incorporate incremental improvements.

With Fitbit Inc (FIT) still going strong and making moves into the smartwatch space, I think Apple realizes it needs to up its game and will skip the “S” strategy to release a full-on Apple Watch 2.

Thinner

There’s no denying the fact that the current AAPL Watch is chunky. Look at its profile compared to say, a Pebble Time Round, and it looks even heftier. Apple has always been obsessed with making everything thinner, so expect designers to be working hard to shave a few millimeters off the thickness of the Apple Watch 2.

More Powerful CPU

Probably the single most frustrating thing for the majority of Apple Watch owners is its pokey performance. As a watch with notifications, everything works as expected. Launch an app, however, and be prepared to wait. A more powerful CPU is high on the must-have list for this wearable to live up to expectations.

Cellular Connectivity

The AAPL Watch relies on an iPhone for much of its functionality. The rumor mill has been filling with reports that Apple may be putting a cellular radio in the Apple Watch 2. Doing so would let users track distance using GPS, stream Apple Music, receive texts and e-mail, and make calls — without needing to carry their iPhone.

Samsung (SSNLF) and some other smartwatch makers have already offered this with limited consumer interest, but making it an optional feature may win the Apple Watch more fans from the Fitbit crowd.

Battery Life

Everyone complains about Apple Watch battery life, but the reality is it’s more than enough to get through a day for most people and that’s good enough. At least for now. If Apple has any hope of making the AAPL Watch 2 slimmer and more powerful, something has to give.

Battery technology moves slowly and even shaving space with a thinner OLED display to add more battery capacity would likely be a wash if an overall slimmer case and more powerful CPU are coming. So, I would not expect to see any significant improvement in battery life, especially if cellular connectivity is added to the mix.

More Bands

Apple has been pretty open about the fact that the Apple Watch isn’t just a device — it’s an accessory. Bands have been the big add-on, the relatively inexpensive way to transform an Apple Watch from a sporty fitness tracker to a fashionable Hermes (HESAF) timepiece. Whatever AAPL does with the Apple Watch 2, expect to see a slew of new bands released too.

Release Date

The original Apple Watch went on sale in April 2015, which made Apple’s March event a likely announcement point for its replacement (assuming a one-year product cycle like the iPhone). Obviously, that didn’t happen.

Most analysts are now expecting a fall release of the AAPL Watch 2, with an announcement as part of the annual iPhone event in September. That’s a 1.5-year product cycle and perfect timing for Apple to drum up excitement in time for the holiday shopping season.

There is a possibility we might see the second-generation Apple smartwatch sooner, though. Quanta Computer (QUCPF) manufactures Apple’s smartwatch and a senior official from that company told TechRadar the Apple Watch 2 was expected in Q2 2016. That timeframe would line up with June’s WWDC 2016 for Apple to make the announcement.

Apple Watch 2 Price

AAPL Watch models currently have prices ranging from $299 to $17,000. The company has already slashed the entry-level price from $349 to $299 and that is actually competitive with most full-featured smartwatches.

Even though Apple would probably like to goose Apple Watch 2 sales above what it’s accomplished with the original, it also loves its margins. Expect Apple to hold the line, keep pricing at existing levels and push new features to make the case for buying an Apple Watch 2.

As usual with AAPL, we’ll have to wait until it finally announces its second-generation smartwatch before any of these details are confirmed. There is also no guarantee the company will actually swing that fall release, but the chances are high enough that I wouldn’t be plunking cash down on an original Apple Watch at this point, even with that $50 discount.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

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Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015.


Article printed from InvestorPlace Media, https://investorplace.com/2016/05/apple-watch-2-aapl-rumor/.

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