A supply chain report gives us two bits of information regarding the Apple Watch Series 3 set to launch later this year. Digitimes reports that Apple will use a different display technology starting in the second half of the year.
Specifically, the report claims that TPK Holding has struggled financially when producing Apple Watch displays thus far (which could also explain the inventory constraints).
Digitimes says Apple will move from touch on lens touch panels that makes use of two pieces of glass to a glass-film touch solution from another supplier.
In order to return to profitability, TPK will focus on 3D sensor-based touch panels for smartphones with OLED displays in 2017 and give up production of touch panels for Apple Watch, the sources noted.
Considering cost and yield rates, Apple will adopt G/F (glass-film) touch solution in place of TOL for new Apple Watch and have Taiwan-based General Interface Solution or Hong Kong-based Biel Crystal Manufactory produce the G/F touch panels, with shipments to begin in the second half of 2017, the sources indicated.
The report notes that the shipments of the display will begin in the second half of the year, which likely means that Apple plans to launch the Apple Watch Series 3 by years end.