Apple iWatch reportedly already in production
Apple's (AAPL) rumored iWatch smartwatch reportedly is already in production. But contract manufacturers are having quality control problems in making the device, Taiwan tech news site DigiTimes reported Thursday.
Apple's iWatch and Qualcomm's (QCOM) Toq smartwatch are seeing less than 50% yield rates "due to difficulties applying surface treatments on their metal injection molded (MIM) chassis," DigiTimes said. "The MIM process is often used in the mass production of high-precision products with complicated industrial designs as it allows components to feature special shapes, but still maintain rigidness."
Some analysts say Apple will come out with a smartwatch in March to compete in the nascent market alongside Sony (SNE), Samsung, Qualcomm and startups like Pebble. Apple's smartwatch is rumored to have a personal health and fitness component like Nike's (NKE) FuelBand.
Samsung Galaxy Gear smartwatch. View Enlarged Image
Smartwatches, fitness bands and other wearable devices are expected to be a big theme at next week's Consumer Electronics Show in Las Vegas.
Ten companies are exhibiting in a special CES tech zone called WristRevolution, including Qualcomm, Burg, Dennco Brands, Kronoz, MetaWatch, Neptune Computer and Cookoo-watch maker ConnecteDevice.
Smartwatches are the most buzzed-about product category heading into CES, according to social media monitoring service Digimind.
Watches accounted for 46% of CES mentions in the Digimind survey. Echo was the top brand mentioned, followed by Pebble, ZTE and Sony, the company said.
Wearable technology will gain respect as a new product category this year, but Apple will make it "cool," Cantor Fitzgerald analyst Brian White said in a research note Friday. He said he expects Apple to launch the iWatch this year.
"It will take a company such as Apple to launch a smartwatch that is actually 'cool' to wear in order to drive mass consumer adoption," White wrote. "In our view, Apple's expansive digital matrix that seamlessly connects devices, strong balance sheet with unwavering R&D commitment, loyal user base, proven ability to deliver aesthetically pleasing products, well respected brand and strong track record of serving up a unique user experience bodes well for the company's ability to capitalize on this new market opportunity."
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