With the glut of new products, not to mention new product categories, Kuo expects the third quarter to be a hugely important time for Apple and how the public perceives its future.
"We believe the rumored iWatch will be Apple's most important product this year, carrying much more weight than iPhone 6," Kuo writes, adding, "as market feedback for the product should reveal whether Apple still has the ability to continue making game-changing products with Tim Cook at the helm."
If iWatch is a hit, Kuo believes that in five to ten years Apple's competition in the sector will no longer be tech companies, but fashion brand vendors.
The analyst says Apple's success hinges on five key factors: replacement demand from larger iPhones; whether the new iPads' minor upgrades will carry momentum in 2014; whether the all-new 12-inch MacBook Air will redefine the notebook user experience; how much low-price iMac can boost overall shipments; and App Store availability on Apple TV.
