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

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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-800x430.png

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.

Article Link: Apple Steps up Procurement for New Apple Watch, Targets Late 2016 Debut
 
Article Link
https://www.macrumors.com/2016/06/15/apple-steps-up-procurement-new-apple-watch/
I was going to try and wait until the 3rd gen but will likely cave when the 2nd gen is announced.

I do wonder though, whether releasing it at the same time as the iPhone 7 will mean some customers having to make a choice between upgrading their iPhone or purchasing an Apple Watch. Maybe the fact that the iPhone 7 appears to be somewhat of an incremental update will steer some towards the watch instead.
 
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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.
 
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Mac Fly (film) said:
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.
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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 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.
 
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I really doubt they'll be able to bring justice to the iPhone, Apple Watch, Mac lineup and introduce stuff like a new Thunderbolt display with one Keynote left this entire year.
 
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"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."

There's no doubt in my mind that these functionalities will be coming eventually, but will all that be included in the upcoming second gen AppleWatch already, the one that's speculated to be arriving for a Fall launch, three to six months from now? I would be very surprised indeed.
 
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djcerla said:
Probably, they will keep selling the Sport model of Watch gen.1 at $149.

Brace yourself for a Watch explosion next Christmas.
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That sounds entirely plausible.

And the watch 1 buyers who don't want to upgrade (most, I would guess) still have an incredible update in watchOS 3 to keep them happy.
 
Would it be in Apple's best interest to release the new Watch along side the new iPhone though? Especially now that contracts are nearly gone, the iPhone's full price is now much more clear. I can't imagine very many people wanting to spend $650+ and then another $400+ at the same time. Combine this with the fact that this is a number cycle, and that watchOS3 significantly speeds up the AW1, I can only see the sales for the AW2 being relatively low.

I'm sure they know more than I do, but I think it makes more sense to stagger the releases by a couple of months. Announce the Watch alongside the iPhone 7, but don't release it until Feb/March. In the meantime, the AW1 could see another price cut.
 
JohnApples said:
Would it be in Apple's best interest to release the new Watch along side the new iPhone though? Especially now that contracts are nearly gone, the iPhone's full price is now much more clear. I can't imagine very many people wanting to spend $650+ and then another $400+ at the same time. Combine this with the fact that this is a number cycle, and that watchOS3 significantly speeds up the AW1, I can only see the sales for the AW2 being relatively low.

I'm sure they know more than I do, but I think it makes more sense to stagger the releases by a couple of months. Announce the Watch alongside the iPhone 7, but don't release it until Feb/March. In the meantime, the AW1 could see another price cut.
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They could just price it through the roof and limit supply? Cream off more profits from early adopters with cash to burn?

The mass-market buyers will still be served by Apple Watch gen 1, some new straps and an os upgrade.
 
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!
 
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Arran said:
That sounds entirely plausible.

And the watch 1 buyers who don't want to upgrade (most, I would guess) still have an incredible update in watchOS 3 to keep them happy.
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Yup.

Apple have an hefty margin on bands, too, another reason for growing the installed base with an aggressive starting tier.

An happy Watch camper will likely buy one more band, or more.
 
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macs4nw said:
"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."

There's no doubt in my mind that these functionalities will be coming eventually, but will all that be included in the upcoming second gen AppleWatch already, the one that's speculated to be arriving for a Fall launch, three to six months from now? I would be very surprised indeed.
Click to expand...

Why? They've had almost two years to design it. The hardware was complete when the watch was introduced in September 2014, it was the software that wasn't ready. They come up with radical new iPhones in less time than that.

On the other hand, I don't think Apple's ready to unbundle it from the iPhone yet. If it does get cellular connectivity, it will be to enhance GPS, and other such functions to reduce battery drain.

JohnApples said:
Would it be in Apple's best interest to release the new Watch along side the new iPhone though? Especially now that contracts are nearly gone, the iPhone's full price is now much more clear. I can't imagine very many people wanting to spend $650+ and then another $400+ at the same time. Combine this with the fact that this is a number cycle, and that watchOS3 significantly speeds up the AW1, I can only see the sales for the AW2 being relatively low.

I'm sure they know more than I do, but I think it makes more sense to stagger the releases by a couple of months. Announce the Watch alongside the iPhone 7, but don't release it until Feb/March. In the meantime, the AW1 could see another price cut.
Click to expand...

Don't forget Apple has a monthly payment plan. So it won't be $1,050+, it'll be $42/month for a watch/phone package, which will likely qualify for an annual trade-in/upgrade.

Based on Apple's struggling watch sales, it's clear Christmas is the biggest selling quarter for the watch ... It's the gift you can get anybody on your list who already has everything. I can't see Apple giving that up. Of course watch sales tanked after Christmas, "other" category returning back to pre-watch levels, so that's one reason to stagger the release. On the other hand, there's much more to be gained by bundling the watch with the iPhone and making it an impulse buy on launch day. Maybe that's how Apple will justify limited improvements on the next iPhone and removing the headphone jack -- a bundled Watch for a reduced price.
 
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iLoveDeveloping said:
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!
Click to expand...
Fair enough, but how do you think your iPhone communicates with your AppleWatch? Those RFs may be weaker, but they are there nonetheless.
 
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iLoveDeveloping said:
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!
Click to expand...
macs4nw said:
Fair enough, but how do you think your iPhone communicates with your AppleWatch? Those RFs may be weaker, but they are there nonetheless.
Click to expand...

I'm more concerned the carriers will see it as an opportunity for another monthly contract!

I'd love to have GPS on the Watch, just not convinced about the battery life trade off.
 
I highly doubt I will upgrade to the AW2 from my AW. I'm still on the fence about upgrading to the iPhone 7 from my 6s, even though I'm on the IUP. There is a strong possibility I'll hold on to my 6s and SE and not upgrade at all this year.

Time will tell.
 
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