CUPERTINO, California, August 30, 2026, 14:36 EDT
- Apple is considering a significant overhaul of the Apple Watch, according to Mark Gurman, though details on timing and design remain unconfirmed.
- Revenue from Wearables, Home and Accessories increased by 6.5% to $7.88 billion in the previous quarter.
- Apple ended trading on Friday at $319.70. The Sunday report has not prompted any market response so far.
Apple Inc. NASDAQ: AAPL is weighing a significant overhaul of the Apple Watch amid increased competition from smaller wearable devices, Bloomberg’s Mark Gurman reported on Sunday. The ideas have not been confirmed, and Apple has not provided any official word on a redesign or timing for a possible release.
The trend “mark gurman apple watch rumors” is significant since the watch is central to Apple’s health offerings. However, Wearables, Home and Accessories accounted for just 7.2% of sales in the latest quarter.
The segment reported $7.88 billion in revenue during the fiscal third quarter. Sales increased by 6.5% compared to the same period last year, while total company revenue advanced 16.4% to $109.42 billion.
| Fiscal Q3 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Total revenue | $109.42B | $94.04B | up 16.4% |
| Wearables, Home and Accessories | $7.88B | $7.40B | increase of 6.5% |
| Category share of revenue | 7.2% | 7.9% | decreased by 0.7 percentage point |
The growth gap remains a primary concern for investors. Although enhancements to the Watch may boost upgrades and retention, the product line needs to recover its falling portion of Apple’s overall sales mix first.
Various sources outline multiple potential changes, such as a wearable without a screen, a more circular shape, and bringing back ceramic material. Gurman’s report indicates Apple has yet to choose a definitive design.
Apple’s latest pricing structure ranges from the $249 Watch SE 3, through the $399 Series 11, up to the $799 Ultra 3. This range allows Apple to explore more streamlined health-focused devices while still appealing to high-end customers.
Oura and Whoop have helped popularise screenless tracking. They attract users by offering uninterrupted health monitoring with minimal engagement, a trend that could encourage Apple to expand past its watch-centric approach.
Apple stock gained 1.63% to close at $319.70 on Friday, increasing its market capitalization by roughly $75 billion. This rise occurred before Sunday’s report and is not linked to the rumor.
The current valuation barely accommodates a minor hardware update. Apple’s market capitalisation stands at approximately $4.67 trillion, and with analysts’ average price target at $324.45, the potential upside is limited to just 1.5%.
Risks: The concepts might not launch, could debut later than planned or may reallocate revenue among Apple’s products. Additionally, a device without a screen may be offered at a lower price and result in reduced short-term revenue per user.
Investors are advised to monitor for official hardware announcements, pricing details, and integration with health services. For now, the speculation carries strategic importance but financial impact remains undefined.
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