Apple iWatch Could Be Bigger Than TVs, Market Watchers Say

While Apple CEO has been throwing out hints about development of both a television and also a wristwatch device, at least some market analysts believe the wristwatch idea may be the bigger hit.

According to numbers collected by Citigroup, the global watch industry will see more than $60 billion in sales in 2013. While that's less than the overall revenue TVs pull in, the gross margins on watches --- the difference between generated revenue and base cost of making watches --- is about 60 percent, four times that of TVs, say Bloomberg Industries statistics.

So, the thinking goes, Apple and its iconic brand and lucrative retail network are positioned to light up the booming watch industry.

"This can be a $6 billion opportunity for Apple, with plenty of opportunity for upside if they create something totally new like they did with the iPod -- something consumers didn't even know they needed," Citigroup analyst Oliver Chen told Bloomberg News.

Analysts further suggest a strong position in the watch market could compensate for the lagging sales Apple's had in other areas, particularly with iPhones and iPods. Apple stock has slumped since peaking in September, as it faces growing competition by Samsung Electronics, not to mention the anxiety some in the market have voiced over Cook's pace in bringing new product to consumers.

Cook has announced he has a team of about 100 product designers working on a wristwatch-like device that company watchers expect to perform some of the same functions as the iPhone and iPad. Such features may include the ability to make calls, see the identity of incoming callers and find map coordinates; the device may also provide a step counter as well as sensors for monitoring health-related data like heart rates.

Apple seeks to introduce the device as soon as this year, this person said. Apple has filed at least 79 patent applications that include the word "wrist," including one for a device with a flexible screen, powered by kinetic energy.

Scott Wilson, a watch designer who developed a line of watchbands for people who wanted to use their iPod nanos as a watches, suggests Apple could adapt its iOS mobile software to limit what information is sent to the significantly-smaller screen of a wrist device.

"There's no doubt the wrist is a valuable piece of convenient, glance-able real estate for viewing essential information," Wilson said. "It'd be great to see information like, 'Where are we meeting for lunch?'"