Apple smart watch update: iWatch starts mass production July, ready for October release

A report released by Reuters Thursday cites supply-chain sources who spoke on condition of anonymity that Taiwan's Quanta Computer is currently conducting trial production runs of what many have dubbed Apple's iWatch. Until now, Quanta has been responsible for the production of laptops and iPods, two of Apple's less popular businesses, and is expected to see a huge boost. Sources say Quanta will be Apple's main iWatch manufacturer and will oversee up to 70% of the assembly process.

Sources say the iWatch, if that will be the name that Apple plans to give its hotly-anticipated smart watch, will have a large display, much larger than the 1.3 to 1.5-inch screens reported earlier. In fact, the watch is said to have a diagonal length of 2.5 inches and a rectangular display. That would mean a screen width slightly larger than 2 inches and plenty of other things.

For instance, Reuters' sources claim the new iWatch will feature a touch interface, something that isn't easily integrated into a smaller screen. Assuming that the smart watch will have that much state, it's possible that the iWatch will offer the interactive notifications Apple introduced in iOS 8 to allow users to use their watch like a miniature iPhone. Sources also say that the watch will also have sensors for tracking health and fitness data, although some analysts believe Apple is working on a separate fitness-centric smartband.

But of course, a 2-5-inch screen also has its downside. On the fashion side of things, there isn't much users can do to make a high-tech watch that looks more like a cuff or a bracelet blend in with their outfits unless they want to look like an obnoxious geek. But then again, Apple has hired former Yves Saint Laurent chief executive Paul Deneve to head its special projects team, so there's really no point dissing a 2.5-inch iWatch as a fashion flop.

The iWatch will be Apple's first jab at the wearable technology market, and many are hoping that Apple's offering will drive mainstream adoption of wearable devices much as the iPhone has jump-started the smartphone revolution in 2007. Other companies, notably Samsung, Sony and Pebble, have dabbled in the smart watch category but have achieved mixed results.

Earlier this year at Re/Code's Code Conference, Apple internet software and services chief Eddy Cue raised expectations for a line of yet-to-be-announced Apple products for this year.

"We've got the best product pipeline that I've seen in my 25 years at Apple," Cue declared.