Like something out of a classic George A. Romero zombie movie, rumors of Apple's so-called "iWatch" keep lumbering forward in search of human flesh. (Okay, maybe not that last part, but they are in search of deep profit margins.)

Bloomberg is reporting that Apple's rumored HDTV set may no longer be drool-worthy for analysts, who have now become fixated on the idea of an "iWatch" instead -- especially when it has the potential for bigger profits.

Citigroup Inc. analyst Oliver Chen claims the worldwide wristwatch industry will generate $60 billion in sales this year, a number that's much smaller than the television hardware business at first glance. However, gross profit margins are said to be upwards of 60 percent, roughly four times that of an HDTV.

“This can be a $6 billion opportunity for Apple, with plenty of opportunity for upside if they create something totally new like they did with the iPod -- something consumers didn’t even know they needed,” explained Chen.

By comparison, a 10 percent slice of the $119 billion television market could only amount to $1.79 billion, compared to $3.6 billion in the first year for an iWatch.

Apple reportedly has a team of more than 100 product designers already hard at work on such  project, which is said to "perform some of the tasks now handled by the iPhone and iPad," according to people familiar with the company's plans. The report claims Apple is pushing to release its wrist-friendly device later this year.

Update: The Verge is adding some additional flavor to the original Bloomberg report, claiming that the "iWatch" will run some form of iOS, although battery life continues to be daunting for Apple engineers.

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