The second-generation Apple Watch is reportedly set to enter mass production sometime in the second quarter, with Quanta as the only manufacturer.
Should this information prove to be accurate, it means that long-standing Apple supplier Foxconn will be out of the picture when it comes to the Apple Watch 2.
The news comes from DigiTimes, which cites supply chain sources from China. It's worth pointing out, however, that DigiTimes can be hit-and-miss with its leaks, as not all of them prove to be accurate. Under these circumstances, it's advisable to take this news with a grain of salt.
That said, DigiTimes reports that Quanta will be the only Apple Watch 2 manufacturer and it will ramp up mass production in the second quarter of this year. This news follows previous reports that a trial production of the second-generation Apple Watch already kicked off this month.
Apple is expected to launch its new smartwatch in September 2016, so this mass production schedule would fall in line with that time frame.
When it comes to the reason behind Apple's decision to leave Quanta as the sole manufacturer, low-volume production could be the answer.
"Apple originally considered shifting some second-generation Apple Watch orders to Foxconn Electronics (Hon Hai Precision Industry)," DigiTimes reports, "but decided to keep all the orders with Quanta as volumes will not be high, the sources noted."
Considering the alleged weaker-than-expected shipments for Apple's first smartwatch, it would make sense for Apple to target a more temperate strategy for the Apple Watch 2, at least initially. Should the gadget prove to be a hit once it comes out, Apple could ramp up production.
"Because of Apple Watch's weaker than expected shipments, Apple recently reduced the device's shipment forecast for 2016 down further from its estimate in the fourth quarter of 2015," add DigiTimes' sources.
The Apple Watch launched as the company's very first smartwatch, coming in various models for different tastes and budgets. Apple did not release any specific sales figures for its smartwatch, but the wearable market is getting increasingly crowded and competition is already fierce.
A new Apple Watch 2 could be able to better compete against rivals, especially if it brings major upgrades over its predecessor, but it remains to be seen how it will all pan out.
Until then, Apple is expected to introduce revamped Apple Watch models in March, as more of a minor update before the Apple Watch 2.
