This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Could a Smartwatch Be Apple, Intel's Next Big Flop?

Stocks in this article: AAPL INTC

Second, and more importantly, who is responsible for the fabrication of the wearable technology phenomenon?

Is it Intel?

Because, if it is, as I indicated Wednesday, Apple (AAPL - Get Report), Google (GOOG), Samsung and anybody else with aspirations should run away as fast as possible.

The tech community appears to have rallied around wearables as the next big thing. But it doesn't feel like a Steve Jobs situation where he knew what people wanted before they knew what they wanted. It seems like we've run out of ideas. And we're going to shove smartwatches and such down the gadget-buying public's throat.

As I said earlier this month with respect to Apple's reported move into wearables:

I'm not all fired up about Apple turning us into a bunch of hypochondriacs with a wearable device that'll do stuff like tell you when you're about to have a heart attack. Frankly, I think it's a big mistake to play into the hands of a health anxious society that Googles every little ache and pain.

Maybe I'm misreading the world's appetite for the next mobile device. But, I'm just saying, don't expect an Apple smartwatch, for example, to sell 30, 40, 50 million units like iPhone does.

Plus, consider when Apple will enter the wearable market (again, assuming it does). It will not enter it out in front the way it did with iPhone or iPad. That might not matter, but I prefer the Apple that leads and then, as it did with iPad, sheds some market share not because of anything it did wrong, but because of market expansion. The copycats come in, spread a market thin and Apple remains the kind of quality.

I'm not going to carry an iPhone in my pocket and wear a smartwatch on my wrist. Just not going to happen. And I get the sense I'm not alone. There's not all of this pent-up demand for wearable technology that Apple -- and everybody else in tech -- needs to service.

There's manufactured demand. It feels as if there's been a need created by some mysterious consensus. I don't want Apple to chase, especially if it means it's running the same race as inept Intel and marketshare slumming Samsung.

I'd prefer Apple blows the doors off with iPhone 6 and iPad Air 2 and a television and calls disruption a day with that.

But I could be wrong. We might be on the verge of a world where everybody wears their technology at the end of their sleeve. I'm just not sold on it yet.

--Written by Rocco Pendola in Santa Monica, Calif.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,645.56 -27.04 -0.15%
S&P 500 2,050.64 -1.18 -0.06%
NASDAQ 4,755.7610 -2.1180 -0.04%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs