Apple Smartwatch Rumors: Quanta Computer to Start Production in July

Jun 20, 2014 09:49 AM EDT | Matt Mercuro

Taiwan's Quanta Computer Inc will start mass production of Apple's first smartwatch in July, according to Reuters.

The tech giant's announcement comes as no surprise since it is trying to prove it can still innovate against other companies like Samsung.

The device, which still doesn't have a name, but has been called the iWatch by a number of media outlets, is Apple's first attempt into a niche product category that a number of analysts are still skeptical about, according to Reuters.

Analysts are mainly worried that wearable devices won't be able to drive profits amid cooling growth in tech gadgets.

Production will be a boost to Quanta, since its work for Apple until now has mainly included just laptops and iPods. Production lines for both are in the decline, according to Reuters, citing a source familiar with the matter.

Mass production will begin in July for the new device, and the commercial launch will come as early as October.

The display will likely measure approximately 2.5-inches diagonally and will be slightly rectangular, according to one of the sources who spoke with Reuters. The watch face is expected to "protrude slightly from the band, creating an arched shape, and will feature a touch interface and wireless charging capabilities," according to the report.

Apple expects to send out 50 million units within the first year of the product's release, though initial estimates are often subject to change.

The watch is currently in trial production at Quanta. Quanta will be responsible for up to 70 percent of final assembly, the source said.

Apple's watch will be equipped with perform some functions independently, but features like voice chat and messaging will require a paired smartphone.

The device will only be compatible with other devices running on Apple's iOS, like its iPhone.

LG Display Co. is rumored to be the exclusive supplier of the screen for the gadget's initial batch of production. It will contain a sensor that monitors the user's pulse.

Sensor maker Heptagon is on the supplier list for the feature, two other sources said, according to Reuters.

Apple, Quanta, LG Display, and Heptagon all declined to comment to Reuters.

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