Apple said to be working on blood sugar meter

The launch of wearables like the Apple Watch was not as big a hit as hoped but rumors are going around that the company is working on products that could be more useful. CNBC heard from its sources that Apple has a small team of biomedical engineering working on noninvasive sensors to monitor blood sugar levels. Such a device could be used to continuously monitor the blood sugar levels of diabetes patients.

The project was reportedly envisioned by Steve Jobs, who dreamed of smartwatches being used to monitor vitals like oxygen levels, heart rate and blood glucose levels.

Such a breakthrough would be a "holy grail" for life sciences. Many life sciences companies have tried and failed, as it's highly challenging to track glucose levels accurately without piercing the skin.

The initiative is far enough along that Apple has been conducting feasibility trials at clinical sites across the Bay Area and has hired consultants to help it figure out the regulatory pathways, the people said.

Apple isn't the only company working on this sort of technology. Google's Verily unit for example teamed up with Novartis to develop smart contact lenses with similar functionality.