Besides the need to step up in-store vigilance, the company is looking at installing special safes in Apple Stores to protect inventory as well as a place to store demo units after hours.

The Apple Watch is expected to ship in April, but concerns about the battery life continue. It seems that the engineers can't yet squeeze out the kind of battery performance that the company could like. It is expected that this along coulc lead some consumers flat on the Apple Watch right out of the gate and may lead some to wait for Apple's second generation offering.

The security issue is a pretty big issue that Apple is going to have to deal with.