The first-generation Apple Watch debuted in April 2015, even though it was announced towards the end of 2014. Now, it’s time for Apple to bring out the yearly update in the form of a second-generation gadget.

Apple has not confirmed the arrival of Apple Watch 2 yet. However, at the WWDC event, the tech giant did concentrate on the watchOS 3 software to a great extent. It is being believed that Apple is working hard to improve the “practicality” of the device, along with some changes to “design and independence (stand-alone usage),” according to Pocket Now.

Furthermore, the first-generation watch sales were quite disappointing, says the same site. The tech giant was reportedly able to sell only 1.5 million units in the January to March 2016 quarter.

According to China’s DigiTimes, Apple is gearing up to start the production process for the second-generation Watch. An insider source within supply chain reportedly told the portal that shipments of required chips and hardware components for the second-generation Apple Watch will start sometime in the third quarter of this year. Therefore, the expected release date should be sometime towards the end of 2016.

Apple’s bulk component order for this year specific to the watch is apparently “higher than expected.” The tech giant has reportedly ordered two million units of the new Apple Watch, expected to ship every month. Looking at the aggressive order, it goes without saying that Apple could be working on something groundbreaking.

On the contrary, credible KGI Securities analyst Ming-Chu Kuo, who has a track record for flawlessly predicting Apple-related news, said in April that Apple Watch 2 will come with minimal updates to hardware components and there will be little to no design change.

Kuo also noted that Apple Watch 2 will come with a relatively bigger battery unit. Apple is also believed to be working to enhance the display/dial of the gadget in order to provide better outdoor visibility.