via VentureBeat

Only yesterday Apple seemed on the brink of releasing its highly-anticipated wrist-wear iWatch by the end of the year, based on reports that it was testing a 1.5-inch display and had already shipped 1,000 test units. But the iWatch may not arrive until late 2014,  analyst for KGI Securities Ming-Chi Kuo claims, and it may not even be a watch–in the traditional sense.

Kuo has been remarkably accurate in the past when it comes to Apple predictions and that’s unlikely to change. He expects mass production to begin in the second half of this year with a consumer availability towards the end of next year. He notes,

“Apple may not have adequate resources to develop an iWatch version of iOS because it may require big changes to iPhone and iPad iOS this year. In addition, wearable device components aren’t mature. For these reasons, we think mass production of the iWatch is more likely to begin in 2H14, not 2H13 as the market speculates.”

The big changes to iPhone and iPad iOS, of course have to do with the complete UI overhaul of which Apple decided to ditch its glitzy, eye-popping interface with something flatter and more traditional, though design guru Jony Ive had to tap into the OS X talent pool and poach some of its engineers in order to ship iOS 7 in time for Apples WWDC next month.

Kuo does confirm some of the iWatch speculations, saying that the device will feature a 1.5 inch to 2 inch screen and will also boast the same GF2 touch-screen technology used in the current iPad Mini and iPod Nano.

Interesting to consider, though, is the cryptic message obtained by leak source AppleInsider from Kuo which says “Investors shouldn’t be misled by the word ‘Watch’.”

Kuo’s tip to investors could carry a slew of meanings, though its likely we won’t know exactly until the end of the year at the earliest. Apple is notorious for plugging up leaks before they even start, so only bits and pieces of the gadget are likely to make their way out of Cupertino. However, Kuo could simply be pointing out that Apple is unlikely to make a typical wristwatch, which would go without saying.

Let’s turn it over to you readers out there. Could Apple just be throwing up a smokescreen to divert attention to the iWatch? Will it make an appearance at WWDC in June and ship by the end of the year? What do you think Kuo meant be investors being misled by the word ‘watch’?