Apple's Watch is designed to be both fashionable and functional.
Samsung Manufacturing Issues Reportedly Overblown, May Split A8 Production with TSMC
This latest information from an anonymous Samsung official contradicts an earlier report that said Samsung was struggling with poor yields of the A8 processor and could not meet Apple's demands. As a result, the bulk of A8 chip production was said to be shifting to Taiwan Semiconductor Manufacturing Company (TSMC). These "manufacturing issues" were "exaggerated claims" says the Samsung source, stating that the company is ready to start mass production of the A8 in Q2 2014.
While Samsung and TSMC may be splitting A8 production however, the latter already appears to have a lead on the Korean manufacturer. A recent report from Taiwan's Commercial Times claims TSMC has started production of the next generation chip.
Samsung has been the exclusive manufacturer of Apple's A-series chips, but Apple has been looking to depend less on its rival by shifting some of its orders to TSMC. Apple reportedly struck a deal with TSMC in 2013 to start A-series chip production early in 2014.