According to Bloomberg sources tells them that Apple could introduce an 'iWatch' as early as this year. The sources also say that 100 product designers are working on the smartwatch which may be able to perform some of the tasks that the iPhone and iPad currently do. Rumours have suggest that the device will also link with these devices to provide information such as email, phone, SMS and application notifications.
Apple has filed at least 79 patent applications that include the word "wrist," including one which features a flexible screen and is powered by kinetic energy. The iWatch is highly likely to run a shrunk down version of Apple's iOS.