Up to 40% Thinner Apple Watch 2 Predicted to Debut at WWDC in June

Apple-Watch-trioApple analyst Brian White of Wall Street firm Drexel Hamilton, who is currently on a Chinese tech tour, today issued a pair of research notes highlighting his upcoming Apple Watch and iPhone expectations through the end of 2016.

Foremost, White cites a source who believes only the 5.5-inch iPhone 7 Plus will feature a dual camera system, echoing the same prediction made by often-accurate KGI Securities analyst Ming-Chi Kuo earlier this week.

The analyst claims that iPhone 7 production is expected to begin in July, and the next-generation smartphone is expected to help Apple and its suppliers return to smartphone growth in the second half of 2016, just months after the iPhone likely experienced its first year-over-year quarterly sales decline ever. Apple announces its Q2 2016 earnings results on Monday, April 25 at 2:00 p.m. Pacific.

Our meeting with a tech supply chain company highlighted a rough end to 2015 with significant forecast reductions from Apple; however, forecasts have been stable since then with 2Q:16 expected to be the trough. After a YoY sales decline in 1Q:16, our contact expects to return to growth in H2:2016. Production of parts of the iPhone 7 are expected to begin in July.

Meanwhile, White predicts that the Apple Watch could be refreshed within the next two to three months. He believes that a 20% to 40% thinner Apple Watch 2 could be unveiled by June, possibly at Apple's annual WWDC, which could take place between June 13-17 based on scheduled availability at Moscone West, the San Francisco convention center where the developer event is typically held.

Finally, we walked away with the sense that the Apple Watch refresh will not occur in September with the iPhone 7, but is more likely to occur within the next 2-3 months, and thus we believe an unveiling at WWDC in June makes sense. We believe Apple Watch 2 could be 20-40% thinner than the current Apple Watch.

Early rumors suggested that the Apple Watch 2 could debut at Apple's "Let Us Loop You In" event in March, which saw the introduction of the iPhone SE and 9.7-inch iPad Pro, but multiple sources have now reported that the next-generation wearable could debut around September. The original Apple Watch was announced in early September 2014 and released in late April 2015.

A few reports do line up with the June timeframe. In November 2015, a Chinese report surfaced indicating that Taiwan-based supplier Quanta Computer was developing the Apple Watch 2 in time for a late-second-quarter launch, with volume shipments beginning in the third quarter. In January 2016, another Chinese report said Quanta would begin trial production of the Apple Watch 2 by the end of that month.

Moreover, in September 2015, Cowen and Company analyst Timothy Arcuri claimed that the second-generation Apple Watch will launch in mid- to late-2016 and be thinner than current models. Few other details are known about the upcoming device beyond a June 2015 report that said it will feature a FaceTime video camera and expanded Wi-Fi capabilities, while new bands and finishes are always a possibility.

Whether the Apple Watch 2 is introduced in June or September, it appears clear that Apple may be elongating the wearable's release cycle beyond one year to avoid consumer exhaustion. Many customers only received the Apple Watch in December during the holiday shopping season, so a new model launching this spring may be considered too soon. A closer to year-and-a-half refresh would seem more appropriate.

Brian White is a longtime Apple analyst that currently serves as Global Head of Technology Hardware & Software at institutional brokerage firm Drexel Hamilton. He previously worked at investment bank Cantor Fitzgerald, where he held the same title, and Topeka Capital Markets. Like many analysts, he has both hits and misses in regards to Apple's upcoming product plans.

Related Roundup: Apple Watch 10
Buyer's Guide: Apple Watch (Neutral)
Related Forum: iPhone

Popular Stories

2024 iPhone Boxes Feature

Apple Changes Trade-In Values for iPhones, iPads, Macs, and More

Thursday January 16, 2025 6:45 am PST by
Apple today adjusted estimated trade-in values for select iPhone, iPad, Mac, and Apple Watch models in the U.S., according to its website. Some values increased, while others decreased. The changes were not too significant, with most values rising or dropping by $5 to $50. We have outlined some examples below: Device New Value Old Value iPhone 15 Pro Max Up to $630 U ...
Generic iOS 19 Feature Mock Light

iOS 19 Leak Reveals All-New Design

Friday January 17, 2025 2:42 pm PST by
iOS 19 is still around six months away from being announced, but a new leak has allegedly revealed a completely redesigned Camera app. Based on footage it obtained, YouTube channel Front Page Tech shared a video showing what the new Camera app will apparently look like, with the key change being translucent menus for camera controls. Overall, the design of these menus looks similar to...
Generic iOS 18

Everything New in iOS 18.3 Beta 3

Thursday January 16, 2025 12:39 pm PST by
Apple provided the third beta of iOS 18.3 to developers today, and while the betas have so far been light on new features, the third beta makes some major changes to Notification Summaries and also tweaks a few other features. Notification Summary Changes Apple made multiple changes to Notification Summaries in response to complaints about inaccurate summaries of news headlines. For...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Launching Later This Year With These 10 New Features

Wednesday January 15, 2025 7:16 am PST by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the "ultra-thin" device. Overall, the "iPhone 17 Air" is shaping up to be a mixed bag. Due to its thinness, the device is expected to have some limited specifications compared to the iPhone 17 Pro models, including only a single rear camera, only a single speaker, no SIM...
2024 App Store Awards

Apple Explains Why It Removed TikTok From the App Store in the U.S.

Sunday January 19, 2025 6:58 am PST by
Apple on late Saturday removed TikTok from the App Store in the U.S., and it has now explained why it was required to take this action. Last year, the U.S. passed a law that required Chinese company ByteDance to divest its ownership of TikTok due to potential national security risks, or else the platform would be banned. That law went into effect today, and companies like Apple and Google...
iPad Pro vs iPhone 17 Air Feature

Here's How Thin the iPhone 17 Air Might Be

Friday January 17, 2025 3:38 pm PST by
For the last several months, we've been hearing rumors about a redesigned version of the iPhone 17 that Apple might call the iPhone 17 "Air," or something along those lines. It's going to replace the iPhone 17 Plus as Apple's fourth iPhone option, and it will be offered alongside the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max. We know the iPhone 17 Air is going to be super slim, but...
iPhone 17 Pro Dual Tone Horizontal Single Feature

iPhone 17 Rumored to Feature Major Thermal Design Upgrade

Friday January 17, 2025 4:33 am PST by
The iPhone 17 lineup will feature a vapor chamber heatsink to improve thermal performance, according to a new report. The news comes from Chinese tech news site MyDrivers, which claims that the entire iPhone 17 lineup, consisting of the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max, will adopt the improved thermal heat spreader. Vapor chamber technology is already used...
HomePod mini and Apple TV

Apple Expected to Launch 20+ Products This Year: Here's the Full List

Friday January 17, 2025 5:30 am PST by
2025 promises to be quite a big year for Apple, with the company rumored to be planning more than 20 product announcements this year. Apple's rumored smart home hub will be its second all-new product to launch in as many years, following the Apple Vision Pro headset last year. And of course, we will get several new iPhone and Apple Watch models, like every year. Beyond that, Apple could...

Top Rated Comments

MacGod Avatar
115 months ago
How about they don't make it any thinner, but use that 'extra' space to put in better battery!

Now that would be great!
Score: 122 Votes (Like | Disagree)
Porco Avatar
115 months ago
Apple to finally release a thinner product? It's about time!*

*this joke contains up to 100% recycled materials.
Score: 105 Votes (Like | Disagree)
Shanesan Avatar
115 months ago
I'm a Watch owner. The Watch doesn't need to be any thinner. It needs to be faster with more HealthKit tie-ins other than movement and heartbeat.

It needs to be a LOT of things, but the LAST thing it needs to be is thinner.
Score: 103 Votes (Like | Disagree)
profets Avatar
115 months ago
Of all products, especially first generations, the Apple Watch is one where I truly don't mind the size and don't think it needs to get thinner. I was so hoping for some extra sensors or GPS and keeping the same battery life.

And most importantly, SPEED!
Score: 79 Votes (Like | Disagree)
arggg14 Avatar
115 months ago
Good, it needs to be thinner. However, until they can make it functional without having to have your phone nearby, I don't see the point.
Score: 70 Votes (Like | Disagree)
levitynyc Avatar
115 months ago
I'm more interested in being 400% more useful and functional.
Score: 38 Votes (Like | Disagree)