Does Apple have another trick up its sleeve with Apple Watch 2?

26 Apr 2016

Apple Watch 2 may come with a new processor, cellular and GPS connectivity, according to reports

Apple is working on adding cellular network connectivity and a faster processor to the next generation Apple Watch 2. The Apple wearable form factor marked its first anniversary this weekend.

Ahead of financial results tonight (26 April), in which Apple’s seemingly unstoppable growth of the past decade may finally be called into question, there is speculation that a second-generation Apple Watch is on the cards.

The new Watch may come with GPS, cellular connectivity and a processor that could help with energy management and cut down on the need to charge the device every night.

Watch this space

The tech giant’s first foray into wearables has so far turned out to be a solid bet, according to the Wall Street Journal, which cited people familiar with the matter indicating that the cellular connectivity and new processor features are on their way.

In an analysis of the first year of Apple Watch sales, the newspaper estimates Apple sold twice as many watches as iPhones in each device’s debut year.

But as sales of iPhones are slowing, the Apple Watch is also being observed as a test of Apple’s ability to innovate under the leadership of CEO Tim Cook.

Analysts estimate about 12m Apple Watches were sold in the first year, amounting to a $6bn business in its own right. According to IDC, the Apple Watch accounted for 61pc of global smartwatch sales in 2015.

By comparison, Apple sold 6m iPhones in its first year in 2007.

All eyes will be on Apple tonight as the company reveals its second quarter earnings, which most likely will show iPhone sales growth slowing for the first time since the device’s debut.

Last year, Apple sold more than 231.5m iPhone devices and it is expected growth will slow to roughly around 200m.

The big question is will Apple Watch be enough to sustain Apple’s meteoric growth levels or will the company need to have a new trick up its sleeve?

Apple Watch image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years