Apple is expected to unveil its next-generation Apple Watch in the third quarter and the wearable device will be manufactured by Quanta Computer and features better performance and longer battery life, according to a Chinese-language Economic Daily News (EDN) report citing market watchers.

Quanta declined to comment on what it called market speculation.

The market watchers cited research firms' figures and pointed out that Apple sold about 7.5 million Apple Watches in 2016, lower than the 12 million units forecast in early 2016.

Currently, improving battery efficiency is Quanta's main task for the new Apple Watch and its other hardware will not see much change, the paper added.