Apple Watch 2 was expected to be released in March, but the company was rumoured to delay the launch for April, 18 months after the launch of the original Apple Watch. It looks like the watch wasn't postponed for April, but June as it is now rumoured to be announced at the WWDC.

WWDC stands for Worldwide Developers Conference, and is Apple's annual software conference. The same report also suggests the watch will have a major design change, with up to 40% thinner design compared to the Apple Watch.

Our meeting with a tech supply chain company highlighted a rough end to 2015 with significant forecast reductions from Apple; however, forecasts have been stable since then with 2Q:16 expected to be the trough. After a YoY sales decline in 1Q:16, our contact expects to return to growth in H2:2016. Production of parts of the iPhone 7 are expected to begin in July.

Finally, we walked away with the sense that the Apple Watch refresh will not occur in September with the iPhone 7, but is more likely to occur within the next 2-3 months, and thus we believe an unveiling at WWDC in June makes sense. We believe Apple Watch 2 could be 20-40% thinner than the current Apple Watch.