Digitimes recently cited Supply-chain sources that suggest that Apple might be looking to launch the second-generation Apple Watch 2 alongside its latest upcoming flagship smartphone the Apple iPhone 7. The cited sources indicated the chips and components for the second-generation Apple Watch 2 are going to begin shipping in the third quarter of this year.
The exact time period of the launch is still unknown. The component production is set for sometime in July to September which would be compatible with Apple launching its latest Apple Watch 2 with the next generation iPhone 7. If the upcoming smartphone is an iterative model then the launch of Apple Watch 2 can boost sales and give the launch event more punch.
According to the same report, Apple is also hoping for a significant increase in sales this year. The source said that the orders for the Apple Watch 2 have been higher than anticipated. According to the source, the orders indicate that about two million units of the new Apple Watch 2 could be shipped monthly.
The tech giant has not revealed sales figure for the first-generation Apple Watch. The $100 discounts last year suggest that the sales might be lower than expected. There has been no consensus on likely figures to date. A KGI estimate indicated the Apple Watch sales numbers would be below 7.5 million units this year. The production of 2 million units a month for the Apple Watch 2 suggests that Apple is expecting a substantial increase in sales and popularity of the next-generation smartwatch.
The reason for that optimism may stem from the fact that latest watchOS 3 has significantly increased the usability of the Apple Watch. The first generation Apple Watch apps opened sluggishly, this has been taken care of in the next-generation model. Glances have also been replaced with a new dock of frequently-used apps which opens almost instantly. In addition to that, the new hardware of the Apple Watch 2 makes it a significantly more compelling device than its predecessor.
A recent forecast also suggested that Apple could score 40% of all watch sales in the $350+ tier by 2020. This forecast includes normal watches as well as smart watches. However, the same source also reported previously that the Apple Watch 2 will be released in the second quarter of the year so we will wait for confirmation before taking this seriously.