7. Keys. Goodbye house keys, office keys, car keys and hotel keys. The key app won't be available at launch but eventually the encrypted near field wireless capability of iBeacon will enable the iPhone and iWatch to serve as a key. For a guy who regularly loses keys, this is much needed.
8. Fraud Protection. Fingerprint Touch ID built into the iPhone 5S is the beginning. Authentication enabled by medical sensors built into iWatch has the potential of taking fraud protection to the next level. This isn't just for financial transactions although that is an important one, hospitals and schools want to know exactly who is coming through the front and back doors. Identification provided by iWatch will do the trick.
9. Sync to Apple's Ecosystem. The small screen of iWatch is not ideal for most computing tasks but it may provide access to anything stored on iCloud. Because it's attached to the wrist, iWatch can provide a reliable backup to your digital world. Perhaps remedial social networking will be part of the iWatch experience as well.
10. Revenue Growth. The ultimate genius of iWatch is that it doesn't appear to cannibalize Apple's existing product lineup. Ask Harvard's Clayton Christensen why he's worried about Apple and he'll tell you it's because of the innovator's dilemma in which the innovator must confront self-disruption. iWatch fits into Apple's product lineup seamlessly. Good luck finding anyone on Wall Street who thinks Apple can return to the old days of hyper-growth.
They think the company is too big. Wrong. It can happen. Wearable tech is poised to cause extrapolated growth from mobile. If Apple dominates wearable market share as it has dominated the mp3, smartphone and tablet market share before it, the iWatch will become Apple's first product to sell one billion units.
When the history books look back, it might be concluded that the primary purpose of the iPhone was simply to open up a global distribution channel for Apple's wearable solutions. iPhone got Apple into AT&T (T) and Verizon (VZ) stores. It got Apple into China. It's getting Apple into India. iPhone took Apple stock from $80 to $550 (with a brief foray at $700). What will iWatch do? Revenue growth coupled with an aggressive buyback to boost EPS has an explosive element to it. I predict that in 2014 analysts will once again start throwing around the AAPL $1,000 price targets.
Don't listen to the tired critics when it comes to iWatch. They don't understand Apple today -- nor have they ever understood it. The truth of the matter is that iWatch has more potential than the iPhone to change the world.
Apple stock in on the verge of regaining an innovation premium because the iWatch is poised to revolutionize individual health care, fitness and personal security while also serving as a wallet replacement, an iBeacon screen, a key, a source of fraud protection and a convenient sync to Apple's ecosystem.
Success in wearables is more than capable of propelling Apple's revenue into hyper-growth territory.
At the time of publication the author is long AAPL.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.