Apple is currently searching for an additional supplier of next year's rumored Apple Watch 2, according to a new report from supply chain sources (via DigiTimes). The company is speaking with Inventec, Wistron and Foxconn Electronics to join Quanta Computer in the manufacturing of the next generation of the Apple Watch. The report cites a "weaker than expected" profit return for Quanta in regards to the first generation Apple Watch, which is causing a few of the targeted manufacturers to voice concern about supporting the long-term investment in the future device.

apple-watch-trio-new

Quanta has invested heavily in equipment for Apple Watch's manufacturing, but its profit return from the device has been weaker than expected. This is a concern for the ODMs that have been approached as a secondary supply partner, the paper added.

Also mentioned in the report is Apple's ordering of 4 million Apple Watch units for the fourth quarter of 2015, slightly down from the original 6 million planned in preparation for the holiday season since demand is "not as strong as expected." Still, the company expects sales for the wearable device to surpass 10 million units by the end of the year, before leading into the rumored launch period of the Apple Watch 2 sometime in the second quarter of 2016.

Today's news comes after Quanta Computer's chairman Barry Lam was reported to have commented on the impending manufacturing process of the Apple Watch 2, giving the device a launch window sometime late in Q2 2016 and higher volume shipments beginning in Q3. Little is known about the second generation Apple Watch, besides a few rumors that pointed to the possibility of a thinner device, integrated FaceTime camera, and a growing independence from the iPhone.

Related Roundup: Apple Watch Series 7
Buyer's Guide: Apple Watch (Buy Now)
Related Forum: Apple Watch

Top Rated Comments

2457282 Avatar
81 months ago
First point: from 2013 to the beginning of 2015 - let's round that to 2 years - Pebble, the most successfully smartwatch company to that point, had sold a total of 1 million watches. Giving it the benefit of the doubt, let's say that by now it has doubled sales to 2 million (in less than 1 year). Apple is predicted to sell 10 million in its first year (actually only about 6 months). And yet people are calling it a failure.

Second point: with the prices of the watches and an estimated margin of 40-50% I am wondering what is going on at the manufacture that is causing them not to turn over a significant margin? either Apple has another one of those deals where the manufacture was never going to make money or the manufacturer is doing something wrong.
Score: 7 Votes (Like | Disagree)
geoffreyspencer Avatar
81 months ago
Apple Watch 2 needs integrated SIM (eSIM), GPS, more health features (i.e. for diabetics), work with hearing-aids w/o iPhone, needs to be thinner (but connect with current bands) and apps should run without the need for iPhone. I do not care about the camera but others do.
Score: 7 Votes (Like | Disagree)
appleguy123 Avatar
81 months ago
I doubt that the watch will be thinner for awhile.

Thinner=less gold=less valuable.
Score: 4 Votes (Like | Disagree)
2457282 Avatar
81 months ago
If the Pebble had the kind of tight integration with the iPhone that the Apple Watch has I'm sure it would sell better. But also many buyers of the Apple Watch do so because it's Apple not because it's actually a good product and Apple is facing a problem where unsatisfied buyers are abound telling everyone it's only so-so.

You need only look at the reviews when it came out to see that no one was impressed by it, it was just a "eh" product. That reviewers felt most could do without and many have.

Don't forget Apple sell around 55-75 Million iPhones per quarter. 2-4 Million Apple Watches sold in these same quarters shows it's got a lot of people to convince. I'm not saying it's a failure as selling millions of anything is definitely not a failure indicator but it's certainly not in the same ballpark as the iPhone and you must own an iPhone to use the watch at all.
Your comparisons are not appropriate. Instead look at this - http://www.statisticbrain.com/wrist-watch-industry-statistics/. What you will find is that the entire smartwatch industry pumped out 6.8 million in 2014. If Apple is expected to hit 10 million in its first attempt, it has completely eclipsed the entire smartwatch market. Let's not compare the watch to the phone. Let's compare watches to watches. As a matter of fact, in that same report, it states that the entire swiss watchmaking industry pumped out 29 million watches. So Apple is selling about 33% of swiss industry. When I look at these numbers I would say that Apple has a runaway hit in the watch space and if I focus on the smartwatch space then Apple just killed it. The watch is not a phone -- it's a watch -- so please let's make sure we compare, um, apples to apples.
Score: 4 Votes (Like | Disagree)
appledefenceforce Avatar
81 months ago
A "weaker than expected" profit return item with a "very sattisfying" sales. Welcome to Apple economics!
That makes sense. Apple's suppliers and analysts just pull figure out of their asses and expect the impossible. This is why Apple is wise to not engage in public discussion about how much they anticipated to sell, and how much they actually sell. It's a first gen product of a new category for Apple. It's gonna take time to mature and then it will boom. Just like the iPod and iPhone and iPad and Apple TV.
Score: 3 Votes (Like | Disagree)
Kajje Avatar
81 months ago
This is why Apple is wise to not engage in public discussion about how much they anticipated to sell, and how much they actually sell
I agree with most parts of your post, but not with this.

They have started every keynote speech for the past years with boasting exactly how many million units they've sold of a certain product. With the Apple Watch they don't. I can understand why this raises concerns.
Score: 3 Votes (Like | Disagree)

Popular Stories

maxresdefault

Review: M1 Max MacBook Pro After Three Months

Wednesday January 19, 2022 11:30 am PST by
It's now been a few months since the M1 Pro and M1 Max MacBook Pro models launched in October, and MacRumors video editor Dan Barbera has been using one of the new machines since they debuted. Over on the MacRumors YouTube channel, Dan has shared a three month review of his MacBook Pro to see how it has held up over time and how it's changed his workflow. Subscribe to the MacRumors YouTube ...
airpodsinear 1

AirPods Save Woman's Life With Feature Everyone Should Know

Friday January 21, 2022 2:13 am PST by
Apple's AirPods have been credited with saving a woman's life after a potentially fatal fall, People reports. When a 60-year-old florist in New Jersey tripped and hit her head in her studio, she lost consciousness and awoke heavily bleeding. With nobody around to call for help, she realized she had her AirPods in, and used a "Hey Siri" command to call 911. An operator was able to stay on the ...
iphone se 2020 top

New iPhone SE Likely to Launch in April Based on Production Timeframe

Wednesday January 19, 2022 6:44 am PST by
Apple suppliers will begin producing display panels for the third-generation iPhone SE this month, with final assembly of the device likely to start in March, according to information shared by display industry consultant Ross Young. Based on this production timeframe, Young believes the third-generation iPhone SE is likely to launch in the second half of April, or perhaps in early May at...
iphone 13 earpods

Apple to Stop Including EarPods With Every iPhone Sold in France From Next Week

Friday January 21, 2022 3:21 am PST by
Apple will no longer include EarPods with every iPhone sold in France, starting on January 24, according to a notice posted by a French carrier (via iGeneration). Apple was previously required to include EarPods in the box with the iPhone due to a French law that required every smartphone sold in the country to come with a "handsfree kit," but the law has now been changed in favor of reducing the ...
Spring 2022 Apple Products Feature

New iPad Air, Macs, and iPhone SE With 5G Likely to Be Announced at Apple Event This Spring

Thursday January 20, 2022 8:32 am PST by
Earlier this week, Bloomberg's Mark Gurman tweeted that Apple "will be holding a spring event" to announce a new iPhone SE and other hardware. In a recent edition of his newsletter, Gurman said the event is likely to occur in March or April. Gurman did not elaborate on what "other hardware" will be announced at Apple's purported spring event, but rumors suggest at least four products are...
appleeducation

Apple's US Education Store Now Requires Institution Verification to Buy Discounted Products

Wednesday January 19, 2022 2:22 am PST by
Apple is now requiring that customers in the United States verify that they're active students, teachers, or staff members at an educational institution in order to access education discounts on products. Previously, little verification was needed for customers to purchase products through Apple's education store in the United States. Apple's education stores offer models of the iPad and Mac ...
AirPods 3 New Firmware Feature

Apple Updates AirPods 3 Firmware to Version 4C170

Tuesday January 18, 2022 11:46 am PST by
Apple today released a new 4C170 firmware update for the AirPods 3, an update from the prior 4C165 that was made available in December. Apple does not offer details on what's included in new firmware updates for the AirPods‌, so we don't know what improvements or bug fixes the new firmware brings. There is no standard way to upgrade the ‌AirPods‌‌ software, but firmware is...
appleprivacyad cleaned

iOS 15 Patched Security Hole That Potentially Exposed Users' Private Apple ID Information to Third-Party Apps

Thursday January 20, 2022 3:32 am PST by
Apple patched two significant security vulnerabilities when it released iOS 15 that could have potentially exposed users' private Apple ID information and in-app search history to malicious third-party apps and allowed apps to override user Privacy preferences, Apple has revealed in a recent support document update. With most iOS, macOS, tvOS, and watchOS updates, Apple provides a list of...
apple watch series 7 aluminum colors yellowbg

Apple Watch Charging Bug Fixed in watchOS 8.4 Release Candidate

Thursday January 20, 2022 4:01 pm PST by
The watchOS 8.4 release candidate that was seeded to developers and beta testers this morning addresses an ongoing bug that could cause some Apple Watch chargers not to work properly with the Apple Watch. Back in December, we reported on a growing number of charging issues that Apple Watch Series 7 owners were facing. Since watchOS 8.3, there have been a number of complaints about...