Will Apple become 'irrelevant' without an iWatch soon?

Apple has until the end of May to unveil the rumored iWatch or risk becoming an "irrelevant company," warns Trip Chowdhry, managing director at Global Equities Research.

"It will take years for Apple's $130 billion in cash to vanish, but it will become an irrelevant company ... it will become a zombie, if they don't come up with an iWatch," Chowdhry is quoted by CNBC as warning.

While Chowdhry's view might be extreme, other Wall Street analysts are warning Apple it needs to come up with a wearable device soon. "The pressure comes from companies like FitBit and Jawbone ... These companies are making these devices and building an ecosystem around these wearables and Apple should certainly want to play in that," says Rob Cihra, a senior tech analyst at Evercore Partners.

"Everyone is expecting Apple to come out with something this year. For one thing, it seems like a natural extension of the iOS ecosystem. It's not a big stretch to think that it's something they should be tapping into," Cihra adds.

No so, says Jason Snell with Macworld. Snell calls the Wall Street analysts who are pressing Apple for an iWatch soon are "completely clueless." People want to be "entertained" and financial analysts want to see rapid growth, both of which make contribution to the analysts being clueless, he explains.

"When you see tech stocks react in bizarre ways (like dropping in value when a company announces record profits or sales), it's because what you consider success often isn't what Wall Street considers success," observes Snell.

"A bored financial analyst setting a 60-day Apple Doom Countdown is like a little kid holding her breath until she gets what she wants," he adds.

I have to agree with Snell about the observations of some financial analysts. At the same time, Apple is getting its hat handed to it by the likes of Samsung in the smartphone space, losing its dominance in the tablet space, and losing out on the innovation buzz to Google Glass.

The company really needs to explore new markets, such as launching a smartwatch worthy of the Apple name. Otherwise, the views of Wall Street analysts will win out in terms of the firm's stock price, which ultimately has an impact on the resources it has to innovate. - Fred