Production snags may delay debut of Apple's next smartwatch

Cupertino, California

APPLE Inc's upcoming smartwatch is suffering production snags as manufacturers adjust to a new design, likely leading to supply constraints or shipment delays, said a source.

The device is expected to have a larger screen, alongside a faster processor, Bloomberg has reported. The upgrade has brought manufacturing challenges, said the source, who asked not to be identified because the situation is not public.

The company is expected to unveil the new line - known as the Apple Watch 7 - in the coming weeks. It is part of a flurry of new products from the technology giant, including updated iPhones, iPads, AirPods and Macs.

It would not be the first time an Apple Watch has hit snags coming out of the factory. The first version was delayed in 2015 due to production problems.

But since Apple has not announced the release date for the Apple Watch 7 yet, it has options. The company could just give a later date or ship a smaller number of units. Nikkei reported earlier that production of the device has been delayed due to the complexity of the new watch. Manufacturers of the product began small-scale production last week, but did not get satisfactory output, Nikkei said.

An Apple spokeswoman declined to comment. The new watches also have screen technology that brings that display closer to the cover glass using a different lamination technique, Bloomberg previously reported. That display layer may be causing some of the production woes, the source said.

Apple is counting on the new line to broaden the appeal of smartwatches and continue fuelling a product category that has been one of its fastest growing. The Cupertino, California-based company got more than 11 per cent of its revenue from wearables, home products and accessories in the last fiscal year, up from about 4 per cent in 2015.

This year's watches will come in 41-mm and 45-mm sizes, up from 40 and 44 mm, Bloomberg has reported. The company is expected to offer multiple new watch faces that take advantage of the bigger screen, including an updated Infograph Modular face.

This will be the second time that the company has increased the display size, following the Apple Watch Series 4 three years ago. Covid-19 disruptions have contributed to production challenges, said Nikkei, which cited unidentified sources in the know about the situation. BLOOMBERG