The next-generation Apple Watch may be launched alongside the iPhone 7, according to a new report. Apple expects the Watch 2 to drive demand higher than what the current Apple Watch has and thus will be readying itself with over two million units of the smartwatch ready for shipment once it is launched.

DigitTimes which reported the news says its sources in the supply-chain claim that shipments of chips and components for the Apple Watch 2 have been beefed up which will only begin in the third quarter ie, from July to September. In all probability, assembly of the watch will take place around the same time readying the watch for a September-October release. More importantly, this time, the company estimates there will be significant demand for the next-generation smartwatch and thus about two million units of the watch could be ready for shipping on a monthly basis.

While the window of release is in line with whatIBTimes UK reported earlier in March, the shipment volume being beefed up is a new development. In fact, prior to this, reports had claimed the opposite, suggesting that Apple had lowered its order for the Watch 2 from its initial estimates.

There was a fair expectation that Apple would announce the Apple Watch 2 at the recently held WWDC 2016 event. But instead it only announced the upgraded OS for the smartwatch which is watchOS 3.

There is no doubt that the Watch 2 will run on the latest software as Apple is unlikely to announce any further software upgrades to the watchOS until September. The watchOS 3 was specifically highlighted by the company at the WWDC with new features, like an app dock for quick access, preferred and recent applications along with improvements in speed, app functioning etc.

As far as the design for the new Apple watch goes, it is expected to stick to the square format but may have some major changes to fit in an ultra-tiny CPU, thus indicating that it will be a lot slimmer than its predecessor. A tiny processor called ARM Cortex A32 built for smartwatches is rumoured to be fit into the next-gen watch from Apple. The A32 promises better battery life, faster performance (up to 25% quicker than the current ARM offering) and lower power usage.