According to Timothy Arcuri Cowen & Co analyst " We continue to believe it is possible the product (iWatch) is backstopped by some sort of insurance subsidization model similar to the carrier subsidization model for iPhone,"
" We continue to feel this product will differentiate itself with existing wearable products primarily from a health perspective with a number of key innovations including noninvasive blood cell count and blood pressure and other more pedestrian features like heart rate."
The point is that wearing the iWatch will keep users healthier by monitoring their steps taken, calories burned, blood pressure, heart rate and other vital signs.
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