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Why Apple could hit $600 soon

Talking Numbers

Will a smartwatch give Apple shares the boost that it needs or will it be dead on arrival?

Dick Tracy had one. So did Captain Kirk. And if the reports about Apple are true, you may soon be able to get one too.

Talking about smartwatches, the latest craze in all things tech.

Samsung fired the first shot in this new battleground yesterday, unveiling the long-rumored Galaxy Gear, a high-tech wristwatch that not only tells time, but also allows you to take pictures, surf the web and send emails (yet another device to distract you during those interminable work meetings!). Apple is expected to unveil its version soon.

(Watch: Samsung throws smartwatch punch)

These so-called “smartwatches” are just the latest examples of wearable technology, a craze that has not only pulled in Samsung and Apple, but also Google, Qualcomm and Sony.

It remains to be seen how popular these devices can become. After all, unlike a phone, watches and eyeglass are very personal objects. They reflect your sense of style, and in some ways, reveal to the world a little bit about who you are as a person.

It also remains to be seen if these products can meaningfully add to Apple’s bottom line.

“The big question is: What will the smart watches cannibalize?” says Enis Taner of RiskReversal.com. Taner points out that if the product is particularly successful, it could eat into iPhone and iPod Touch sales, a very profitable area for Apple.

(Read: Apple sends out invitations to Sept. 10 event)

Apple’s stock has had a massive run of late, rising almost 30% from its May lows. Much of that move has been fueled by speculation about what Carl Icahn will try to do with Apple’s huge cash hoard. So will a potential smart watch help or hurt America’s favorite tech stock? Watch the video above to find out the surprising answer.

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