Apple Watch Series 3 pegged for second half of 2017

Report: Apple Watch Series 3 late this year; continued two-generation strategy

DigiTimes, which keeps its ear close to the ground within Apple's supply chain, said Wednesday that Chinese company Compal Electronics will start to shoulder some of the Apple Watch Series 2 manufacturing, which is now built entirely by Quanta Computer, also in China.

The Apple Watch Series 2 will be a year old in September 2017, so we're expecting Apple to begin refreshing the wearable once a year, just as it does with the iPhone.

Apple is planning to release a third-generation Apple Watch later this year, according to a new report.

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While Quanta has secured 100 percent order allocation for the next-generation Apple Watch, which is expected to be released in the second half of the year, Compal will be sharing the production load for the second-generation series, Digitimes said, citing sources in upstream supply chains.

Compal's investor relations declined to comment on the report.

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Apple (aapl) debuted its current Apple Watch, the Series 2, in September, more than a year after premiering its original Apple Watch in April 2015. It has, however, been diversifying in the last few years and some of these efforts have been paying off. According to latest reports about the next-generation iPhones, however, Apple could be pushing back the release of the smartphones to October or November. However, around the time when the third-gen Apple Watch comes out, the Watch 2 production will be given to Compal.

Compal has been moving equipment from plants in Eastern China to Chongqing since the second half of 2016, and the plants will gradually become the main production base for IT products including tablet, smartphone and wearable devices. In 2017, this figure is expected to be double as it is estimated that Compal will ship about 10 million wearable device units.

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