KGI Securities analyst Ming-Chi Kuo issued a research note to investors today in which he predicts an all-new
Apple Watch 2 will likely launch in the second half of 2016 with a faster TSMC-built under-16nm processor, GPS, barometer, and a higher capacity battery.
Kuo, well connected within the supply chain, believes the second-generation Apple Watch will retain the same screen sizes and thickness as existing models, with a similar form factor overall, despite adopting
thinner display technology. While the Apple Watch 2 was once
rumored to include cellular connectivity, however, Kuo does not expect LTE support until 2017.
The analyst also predicted that upgraded first-generation Apple Watch models will debut in the second half of 2016 with the same processor and waterproofing upgrades, but likely without the Apple Watch 2's most significant additions like a GPS and barometer. Kuo expects another Apple Watch price cut once the new models are launched, but remains conservative about prospective shipments in 2017.
Apple Watch shipments could rise further between 2018 and 2020, pending significant form factor changes, FDA approvals supporting more medical and health applications, and 5G network commercialization.
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Faster Apple Watch 2 With GPS, Barometer, Larger Battery, and Same Thickness to Launch in Late 2016