Apple Watch chip suppliers are preparing to produce 40+ million units

Apple chipmakers are gearing up to start production of the Apple Watch, according to a new report. Orders for the chips suggest that the initial production run is likely to be between 30-40 million units. If accurate, these figures fall in the middle of previous guesstimates regarding how many Apple Watches Cupertino plans to sell in 2015. One recent report claimed that Apple has placed orders for shipments of up to five million AMOLED panels per month, which would suggest sales of 50+ million units next year. 

A rumor out of East Asia on Wednesday claims chip manufacturers responsible for supplying silicon for the upcoming Apple Watch are ramping toward production ahead of an expected early 2015 launch.  Citing industry sources, DigiTimes reports Apple’s chip suppliers are nearly ready to start production for components bound for the Apple Watch, the company’s first foray into the wearable device segment. Judging by the the first batch of orders, supply chain sources estimate Apple to turn out an initial 30 million to 40 million Apple Watch units. By comparison, Samsung’s Galaxy Gear smartwatch sold some 800,000 pieces during its first two months on sale. With Apple Watch, Apple is employing advanced system-in-package (SiP) technology that goes beyond the current A-series chip designs to include an entire computing system on a single chip. Dubbed “S1,” the Apple Watch SiP is a custom-designed piece of silicon that stacks and integrates multiple subsystems into an area small enough to fit within a wristwatch’s small footprint.