Apple to Replace iPod With... iWatch?

As we already know, Apple is expected to release its iWatch in the fourth quarter of 2014. The wearable gadget will come in two sizes and feature a bunch of health-tracking sensors.

This is good news. However, as Christopher Caso of Susquehanna Financial Group claims, Apple's iWatch will replace the iPod. And that's definitely not good.

Here's what the analyst predicts (via MacRumors):

Caso says Apple has production targets of 5-6 million units, but believes the iWatch will "essentially replace the iPod in the consumer portion of AAPL's product lineup" and will see lowered iPod sales as a result of customers choosing the iWatch instead. The note says the iPod is not expected to be updated this year.

Earlier this year, Tim Cook said that the iPod "is a declining business". In 2013, the company managed to earn only $5 billion selling its portable music players. That's 3 billion less than in 2008.