Thursday, April 14, 2016

Apple Watch 2 Ready for Production for June Unveiling

Apple Inc. (NASDAQ:AAPL) is expected to launch the Apple Watch 2 in the second half of this year, while rumors and speculations surface every day. Today, a report claims that overseas manufacturers, including Samsung, have secured their place in the tech giant’s supply chain for the next gen smartwear device’s components.

The supply chain inside report expert, DigiTimes, reports that the Taiwanese Advanced Semiconductor Engineering (ASE) has secured the majority of orders for producing the new Watch’s system-on-a-chip processor. The SiP (system-in-package) module provider was in the supply chain for the first Apple Watch and has maintained its inclusion in the product line. Meanwhile, STATS ChipPAC, an arm of Jiangsu Changjiang Electronics Technology, and Amkor Technology will share the leftovers of the entire SiP module supply, according to the publication's sources.
Meanwhile, another Taiwanese manufacturer, Kinsus Interconnect Technology, has obtained the substrate orders for the new Apple Watch while Samsung Electronics will fabricate the processors, which contain NAND flash, DRAM, and other chips. Both Samsung and Kinsus supplied components for the first Apple Watch, which is powered by Apple’s S1 chip.
Previous reports claimed that Quanta Computer will probably be the major manufacturer for the new Apple Watch. The company reportedly initiated trial production of the upcoming device back in January, which was meant for a launch in June, with mass production and shipments scheduled in the third quarter, anytime between July and September.
While Apple has not confirmed the release date or price on the Apple Watch 2, it could come anytime this year. The first smartwatch was launched at the March event last year, while the iPhone SE was launched this year. The next gen watch could be unveiled at the annual Worldwide Developers Conference scheduled in June or at the annual iPhone event in September. The first Apple Watch was unveiled in September 2014 and launched in April 2015; thus, it could follow a similar pattern with the June and September event or the exact same pattern all over. The well reputed KGI Securities analyst, Ming Chi Kuo, estimates the product to go into mass production in the third quarter of this year, scheduled alongside the iPhone 7 fall launch.
There is little information on what the Apple Watch 2 would be like, aside from the enhanced Wi-Fi technology and video camera for FaceTime. Mr. Kuo believes that the device will mostly house internal changes and the design and appearance will be barely modified. Apple has still not disclosed how well the first Apple Watch really did; neither the sales nor the incoming revenue has been reported. This is why people believe that the product didn’t do as well as the company, investors, and analysts expected it to. Perhaps the Apple Watch will bring in more sales and induce a rise in the adoption rate of such smartwear technology.
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