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3 Apple Surprises You'll See Before Year's End

Stocks in this article: AAPL NKE AMZN GOOG

The new software will help drive new phone buyers and increase the loyalty of existing users.

2. The Apple Band is going to be a runaway hit.

The consensus view is Apple will deliver a new wrist watch that a lot are calling an iWatch. It's unclear when it will be shipped.

Apple has clearly been hiring people with this biometric expertise for months now.

Last week, Apple made its biggest hire yet, bringing on board a top adviser to Nike (NKE) for its FuelBand product. (Coincidentally, Tim Cook sits on the Nike board. So this is a product area he knows well and has for many years now.)

Most think the iWatch will be a niche product and the masses will shrug their shoulders at it. Apple doesn't go after any new product it believes will be a niche.

Just as people underestimated how popular a new tablet called the iPad would be, I sense the world is way behind in its thinking of how popular a new watch or band from Apple will be.

I tend to think it will be more of a band. I've been using the FitBit Flex for a couple of weeks now and it is addictive and inconspicuous on my wrist. I don't even notice it anymore. Yet, I'm constantly checking my FitBit app throughout the day on my iPhone -- which wirelessly synchs to my app -- on how many steps I'm walking along with calories burned, hours slept, water I've drunk, etc.

I expect Apple to take measuring this type of health information to the masses. I also think it'll integrate other helpful communication info to a band such as clock, email, key messages, stock info, etc. -- things you always check throughout the day once you've dug your phone out of your purse, breast pocket or back pocket.

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