Now this is what you call optimism. According to the insider website DigiTimes, chip suppliers involved in the supply chain of the Apple are gearing up to start production of the proprietary chip for the Apple Watch. In addition, sources working for these manufacturers are saying that orders for the chips are estimated at between 30 and 40 million units.
That’s a huge number: 30 to 40 million units! Cue the sound of jaws dropping. In comparison, Samsung’s Galaxy Gear smartwatch sold around 800,000 units during its first two months on the market. Then again, nobody ever accused Apple of lacking boldness. They are accustomed to sending winners out into the marketplace, and they don’t settle for half measures.
Here’s another comparison. Apple’s new iPhone shipped just under 40 million units last quarter, far and away Apple’s most popular product. But that’s a device that’s a proven winner, and the things practically sell themselves. On the other hand, the Apple Watch is a brand new product line for the company. Do they have some kind of insider knowledge to justify producing so many units? Or have they just gone mad?
It will also be interesting to see how many of these 40 million units will consist of the solid gold Apple Watch Edition models, rumored to retail for up to $5,000.
As for the proprietary Apple Watch chip, that’s an interesting story in and of itself. Apple is using an 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. Called the S1, the Apple Watch SiP is a custom-designed piece of silicon that stacks and integrates multiple subsystems into a little bitty wristwatch.
Apple has been pretty quiet about the S1, just as it’s been pretty quiet about lots of other things about the Apple Watch. But Apple SVP of Design Jony Ive has said the S1 chip is entirely encapsulated in resin for protection against the elements.
It’s an impressive bit of technology. But 40 million of ’em?