Apple's share of the tablet market has continued to drop in the fourth quarter of last year, on account of strong competition from Samsung Electronics and other players, according to research firm IDC. Apple shipped 47.8 million iPhones in the quarter, but its hyper-growth has ended, and its market share is expected to peak at 22 percent in 2013, ABI Research said. There is speculation that Apple will look for growth in new product categories, as well as in lower-cost versions of the iPhone to address emerging markets.
Some companies have previously experimented with wearable technologies, including watches. Microsoft, for example, launched a smart wrist watch around a concept called Smart Personal Object Technology it unveiled in 2002, but withdrew it after a lackluster performance.