The Nikkei reports the iWatch (AAPL +0.2%) is expected to arrive in October, and (per a parts supplier) will see initial production of 3M-5M units/month. In-line with past rumors, the device is said to feature a curved OLED display and health sensors that monitor data such as "calorie consumption, sleep activity, blood glucose and blood oxygen levels."
Apple is only 4 days removed from unveiling its HealthKit platform, which (together with an iOS Health app) aims to give an integrated view of health/fitness data from hardware sensors and 3rd-party apps/services. Samsung integrated several health sensors into the Galaxy S5, and Google has made health monitoring a key part of its new Android Wear platform.
Citing talks with current/former Apple employees, BuzzFeed reports the iTunes team was "plagued by shortsighted management" that ignored competitors, ahead of the Beats deal. Some managers reportedly refused to "open or use Spotify," and some didn't know it was an on-demand streaming service (rather than a radio service). Others referred to Pandora as a "dead company."
In addition to potentially improving audio quality for high-end headphones, a Lightning connector could allow users to control/launch apps via their headphones, and to charge an iDevice using an external battery.
Update: Re/code also reports Apple is aiming for an October iWatch launch.