In a report published Thursday, Oppenheimer analyst Andrew Uerkwitz argued that we are at an inflection point in the next stage of computing as theApple Inc. (NASDAQ: AAPL) Watch will expand on the intimacy of hardware.

"With increasingly accessible supply chain, capital, and consumers, and with a notification-based interface, the Watch is the missing link to connect Internet of Things (IoT) applications to consumers," Uerkwitz wrote. "We believe in the next five years, the Watch will revolutionize the way we interact with objects around us."

Uerkwitz said that the Watch is a "digital concierge" and will be the primary interface between users and a myriad of connected hardware devices consumers will add to their lives. As such, the Watch will bring major changes in the way people construct their own digital experience.

Related Link: This Firm Just Slashed Apple Watch Estimates

Uerkwitz noted that Apple could win in the space (where others have failed) as the company is an expert at human interface designs and optimizing user experience. The analyst added that the Watch's interface design actually helps to exceed its own physical limitations in size and power.

Bottom line, the analyst stated that Apple will lead the way in the next stage of personal computing over the long term. In the near term, share gains and updated capital allocation could outweigh potential disappointing early shipment numbers of the Watch.

Shares remain Outperform rated with a $155 price targ