Apple Steps up Procurement for New Apple Watch, Targets Late 2016 Debut

Wednesday June 15, 2016 1:55 AM PDT by Tim Hardwick

Apple has stepped up procurement of chips and components for the second-generation Apple Watch, according to sources from the supply chain (via DigiTimes).

Shipments of chips and components for the second-gen Apple Watch are reportedly set to begin in the third quarter, indicating a launch later this year.

applewatch
Orders for the upcoming Apple Watch have been higher-than-expected, according to the sources, after what they called "disappointing sales" of the first-gen smartwatch. Despite that, Apple's pull-in of orders is said to be "rather aggressive", and the sources estimated that about two million units of the new Apple Watch could be shipped monthly.

Taiwan-based website DigiTimes has a mixed track record at reporting on Apple's upcoming product plans, but its sources within the upstream supply chain have proven reliable in the past.

Rumors had initially suggested Apple would introduce the second-generation Apple Watch in March 2016 with shipments of the device set to begin in April 2016, but a conflicting report confirmed the Apple Watch 2 would not be ready for a spring launch.

A rumor out of the Asian supply chain in January suggested work on the next-generation Apple Watch was already underway, with Quanta working with Apple on the development of the device. Trial production on Apple Watch 2 was rumored to have started in January, with full production beginning in mid-2016 in preparation for a fall launch alongside the iPhone 7.

Apple is said to be working on implementing cellular network connectivity and a faster processor. Built-in cellular capabilities would allow the Apple Watch to place calls, send messages, and access data without the need for an iPhone, while a faster processor would result in speed improvements when accessing apps.

Related Roundups: Apple Watch, watchOS 6
Buyer's Guide: Apple Watch (Neutral)

Top Rated Comments

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50 months ago

Amazing how orders for something you can't order are higher than expected :)

they mean the orders for manufacturing the watch. Not customers orders. This is a trade publication so they are talking from that point of view.
Score: 8 Votes (Like | Disagree)
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50 months ago

I love how Digitimes seems to know the monthly sales of a watch that's a few months away from launch. Why waste your time writing about tech and use that crystal ball they've got for something useful.

They are guessing it from Apple's orders for components from suppliers down the line. You have to order components far in advance of the launch of the product. Digitimes ('http://www.digitimes.com/index.asp') is an electronic components trade magazine.

Sometimes Apple would have to commit to order components years down the line. For example OLED screens for phones. To get components the supplier's suppliers would have to build machines to manufacture the components, the supplier would have to build factories. Then they would have to get those machines and factories to work and produce decent yields of those components. This might be the results of years of planning and work.
Score: 5 Votes (Like | Disagree)
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50 months ago

Amazing how orders for something you can't order are higher than expected :)

They are not talking about orders of the new Apple Watch, it's the supply chain orders of the components that will go in it.
Score: 4 Votes (Like | Disagree)
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50 months ago

Probably a joint refresh together with the iPhone later this year?

They should ramp up production of the iPhone SE. Have been waiting for mine to arrive for a month now. It's ridiculous.
Score: 4 Votes (Like | Disagree)
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50 months ago

Amazing how orders for something you can't order are higher than expected :)

Apple is the one ordering them.
Score: 3 Votes (Like | Disagree)
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50 months ago
I know I'll get clobbered for saying this but here I go anyway. Who the hell what's a cellular device strapped to their wrist 12-16 hours a day everyday all year round. That can't be good for you! If this does come to fruition I hope its removable (sim?) or at least deactivatable.. And yes I know, little scientific evidence of radio waves blah blah blah but as long as their is a chance with little definitive proof for or against I'll leave it thanks.. And those studies are mostly done using a device 10mm for your body for a few hours, not THIS kind of exposure. We will be the lab rats and the health benefits from closing a few rings don't out way the risk. That's just my two cents. NO CELL COMPATIBILITY!
Score: 2 Votes (Like | Disagree)

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