Apple is reportedly encountering significant challenges in the development of its next-generation Apple Watch SE, according to Bloomberg’s Mark Gurman. The tech giant is said to be working on a revamped version of the budget-friendly smartwatch, which may feature a plastic body instead of the aluminum chassis used in previous models. However, both Apple’s design and operations teams are facing difficulties that could threaten the project’s future.
In his recent Power On newsletter, Gurman highlighted that Apple’s design team is reportedly dissatisfied with the appearance of the plastic-bodied Apple Watch SE. Meanwhile, the company’s operations team has found that the cost of producing a plastic case does not differ much from the current aluminum version. Without significant cost savings, the change to plastic may not provide the budget-friendly advantage Apple had hoped for.
The second-generation Apple Watch SE, launched in 2022, remains Apple’s most affordable smartwatch. It uses an aluminum chassis while maintaining a premium look and feel. A plastic-bodied version could help Apple target a broader market segment. However, Gurman suggests that the project is now facing “serious jeopardy,” and there’s a chance it could be scrapped altogether.
Apart from the Apple Watch SE, Apple is also struggling with the development of a blood pressure monitoring feature for its premium smartwatches, including the upcoming Apple Watch Ultra 3 and Apple Watch Series 11. Gurman reports that testing of this feature has not gone smoothly, with potential issues related to accuracy, battery life, or false readings. These problems could delay the feature’s introduction, which is expected to launch alongside the iPhone 17 in September 2025.
Despite these hurdles, there are some positive developments on the horizon for Apple’s smartwatch lineup. The upcoming Apple Watch Ultra 3 is expected to offer enhanced connectivity features, such as satellite texting and Reduced Capacity 5G (5G RedCap). These improvements would enhance cellular connectivity, particularly when the watch is used independently from an iPhone. These features are likely to appeal to outdoor enthusiasts and professionals who require reliable communication in remote areas.
Apple’s smartwatch division is facing a challenging period. Bloomberg reports that Apple Watch shipments declined in 2024, contributing to the first-ever contraction in the global smartwatch market. With less than six months until the anticipated September launch of the Apple Watch Ultra 3 and iPhone 17, Apple must address these development issues to boost sales and regain momentum in the competitive smartwatch market.
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