Apple is intending to start shipping the Apple Watch Series 3 in the second half of 2017, Digitimes reported yesterday. Compal Electronics has entered the supply chain to help build the new device. It won’t actually manufacture the Series 3 though, instead over taking responsibility for Series 2 production from current builder Quanta Computer.
This implies Apple will continue to build and sell the Series 2 alongside the new model, as it currently does with the Series 1 and 2. The dual-cycle approach positions the wearable uniquely in Apple’s product portfolio, enabling consumers to purchase an older model at a slight discount if the new features don’t appeal.
There’s not a lot known about the Apple Watch Series 3 but a few details are beginning to leak out. Apple is expected to add a substantially faster processor and larger battery to improve on the Watch’s weakest areas. The company is also tipped to add cellular connectivity, turning the Watch into a standalone device that lets you leave your phone at home.
The Apple Watch currently accounts for over half of the wearables market. Apple has had more success convincing smartphone owners to try a smartwatch than its rivals. However, growth is slowing and analysts expect the company won’t be able to continue the momentum this year.
A survey released by marketing platform Fluent this week revealed that interest in the Watch has stagnated and demand for a new model is low. Only 49% of current U.S. owners said they’re planning to upgrade their device in the next year, down from 62% last year. Just 15% of iPhone users who don’t already have a Watch intend to purchase one in the coming twelve months.
The figures are indicative of the problems facing the smartwatch industry. It’s not just Apple that’s feeling the pressure as the company’s major ecosystem rival, Android Wear, is also struggling to attract attention. Motorola, maker of one of the most popular Wear devices, has cancelled plans to launch a new smartwatch in 2017 due to low demand. This is despite the launch of the all-new Android Wear 2.0 platform earlier this year.
The Apple Watch Series 3 will launch into a troubled market that shows no signs of rejuvenation in the near future. Smartwatches have failed to have the transformative impact that phones did a decade ago.
Apple is continuing to launch new band styles for the Watch each season, aiming to sustain interest in the wearable. With the next version still months away and demand flagging, the company could find it hard to ship new devices though. This will be especially true if the core design is left unchanged, a recurring characteristic in Series 3 rumours.
