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All eyes on Apple Watch to boost wearable device market

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Expectations are high for Apple Watch

Apple (AAPL) announced that it will launch Apple Watch by April 2015. During the earnings call, management noted that the company is making great progress with Apple Watch and that more developers are working on apps for the product.

Expectations are high that Apple Watch will be a success. For example, according to a note provided by JP Morgan to AppleInsider, Apple could sell about 26 million Watches by the end of calendar 2015. A Morgan Stanley (MS) note suggested the company could sell 30 million Apple Watches this year. According to another report by DigiTimes that cites industry sources, Apple could manufacture 30 million to 40 million Apple Watch units in its first year.

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Competitors have failed to create much hype

These are high expectations, especially when you consider that competitors have failed to get as much hype as Apple is generating with Apple Watch. For example, according to a report from Canalys, only 720,000 Google (GOOG)(GOOGL) Android Wear devices were shipped in 2014 after the product line was released in June that same year.

Among the vendors who deployed Android Wear were Motorola, LG, ASUS, and Sony (SNE). The Canalys report also notes that a total of 4.6 million smart wearable bands were shipped and that Pebble shipped 1 million devices last year.

The most attractive part of Apple Watch will be the apps available in the App Store, especially the HealthKit app. This app can capture data related to your health and alert you and your doctors accordingly.

To tap this user need, Microsoft (MSFT) recently launched a fitness device, Microsoft Band, and an accompanying app, Microsoft Health, to analyze data from the band and give health-related tips to consumers.

If you’re bullish about Apple Watch prospects, you could get diversified exposure to Apple by investing in the Sector SPDR Trust SBI Interest (XLK), which has 16% of its holdings invested in Apple.

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