“Upstream component makers have seen weaker-than-expected orders for tablet and wearable products since the early first half and the issue is expected to continue in the second half of the year and will hurt the makers’ revenue performances in 2016,” Monica Chen and Joseph Tsai report for DigiTimes.

“Although the second-generation Apple Watch is estimated to be unveiled in September or October,” Chen and Tsai report, “related supply chain is seeing rather conservative orders for the device”

Chen and Tsai report, “The Apple Watch, which accounted for nearly 50% of the smartwatch market in the second quarter, has had difficulties providing sufficient profits to its component suppliers, and revenue contributions from its competitors have been far less.”

Read more in the full article here.

MacDailyNews Take: We’ll be snapping up Apple Watch 2 units the second they’re available!

As for component orders, better for Apple to ramp properly than to overshoot demand.

With watchOS 3 coming to enable basically a whole new Apple Watch, if Apple keeps the original models on the market at reduced prices, they’re going to dominate the smartwatch market even more than they do now!

SEE ALSO:
Apple Watch sales drop dramatically ahead of anticipated next-gen hardware – July 22, 2016
Apple Watch user satisfaction stays strong at 94% – July 22, 2016
83% of Apple Watch users experience notable improvement in overall fitness and health – July 21, 2016
IDC: Apple remains far and away the market leader in smartwatches – July 21, 2016