Rumor claims next-gen Apple Watch going into mass production in Q2

Apple had considered placing some orders with Foxconn, its main manufacturing partner, but volumes aren't expected to be that high, supply chain sources claimed to DigiTimes. Both Quanta and Foxconn refused to comment on the matter.

The site suggested in fact that Apple has scaled down its 2016 shipment forecast for the Watch, owing to weaker-than-expected performance in 2015, even though the device may control over 50 percent of the smartwatch market. Apple has not released official sales figures, and research estimates have sometimes varied wildly.

DigiTimes has a mixed track record when dealing with Apple products, and indeed the idea of second-quarter Watch production might conflict with more recent rumors that Apple is planning to launch updated hardware in the fall.

The company is expected to host a press event in March at which the Watch will play a part, but only in terms of new bands, and partnerships with firms beyond Hermes.