Ear/headphones are the original wearable.
Gordon Kelly on Forbes.com opines that Apple will abandon the headphone jack to be replaced by the Lightning connector. In addition to component reduction, and enabling thinner devices, it enables digital data communications. Other than music, what digital data could be sent through Lightning?
Context switch to mHealth. Imagine all the sensors that could be built into a set of fashionably bulky headphones. Pulse-ox to measure pulse rate and blood oxygen levels, thermometer to measure body temp, even EEG (think Neurosky), all feeding into HealthKit. And all that without having to establish a wireless connections.
In addition to high margin hardware, and streaming music subscribers, was Beats a mHealth wearables play?