Next-generation iPhones likely to focus on internal improvements.
iWatch Reportedly Entering Production in Small Quantities Ahead of Fall 2014 Launch
Echoing an earlier report from notable analyst Ming-Chi Kuo, the site's sources also suggest the iWatch will take advantage of a system-in-package (SiP) design that allows a multitude of chips to be placed on a single module. This could allow Apple to the fit multiple sensors rumored for the smart watch into a tiny area while keeping the device small enough to be worn comfortably on the wrist.
Rumors have indicated Apple's iWatch will contain several different biometric sensors allowing it to track health-related statistics like heart rate, sleep quality, movement, and more. The sensors will aggregate data that will be stored in a rumored "Healthbook" application, slated for inclusion in iOS 8.
Along with including health sensors, the iWatch will likely function similarly to other smart watches on the market, integrating with the iPhone and iPad to provide notifications and quick access to frequently used apps and services.
Apple's iWatch is expected to ship in two different sizes to accommodate different sized wrists and it may also come in multiple price points and materials. According to recent reports, Apple's iWatch could make an appearance as soon as September, but a solid launch date remains unclear.