• The Apple Watch 2 is expected to be replaced by Apple Watch 3 in Q3 2017.

The Apple Watch 2 is expected to be replaced by Apple Watch 3 in Q3 2017. (Photo : YouTube / Marques Brownlee)

Before the upcoming release for the next iteration on Apple's Watch series, the rumor mill continues to reveal the key specs and hardware of the said watch. In a recent report, the Cupertino-based tech giant is looking to adopt glass-film displays on its smartwatches, a leap from its touch-on-lens (TOL) solution used in the existing Apple Watch 2.

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In the latest documentation, Apple Inc. will reportedly hire Taiwan-based General Interface Solution or Hong Kong-based Biel Crystal Manufactory to produce these new displays. According to Digitimes, Apple will consider the admission of glass-film for better yield rates and cost-friendly approach.

"Considering cost and yield rates, Apple will adopt G/F (glass-film) touch solution in place of TOL for new Apple Watch and have Taiwan-based General Interface Solution or Hong Kong-based Biel Crystal Manufactory produce the G/F touch panels, with shipments to begin in the second half of 2017, the sources indicated."

In the past, the yield rates for TOL panels are not promising, owing to the curved surfaces equipped on Apple's Watch screens, which made touch sensors a difficult manufacturing asset.

The reputation of TPK Holding for Apple Watch Series covers almost two years of producing G/G (2 pieces of glass) touch panels. The tradition then stopped after Apple started administering TOL (touch on lens) for the second-generation Apple Watch in 2016. According to industry sources, "TPK has been unable to hike yield rates for TOL touch panels to a reasonable level and is therefore mulling stopping production for the Apple wearable devices."

On another note, KGI Securities analyst Ming-Chi Kuo and other sources have suggested that the next Apple Watch could include an LTE chip for cellular capabilities for early 2017. Previous rumors also reveal that Apple may switch from OLED to micro-LED displays for the Apple Watch 3 in the second half of 2017, Mac Rumors reported.

Apple Watch Series 3 is also expected to come with better battery life, sleep tracking, always-on display and new watchOS 4 software. Apple has already filed patents for added features that may be included in its next-gen Apple Watch, such as a heart rate identification system, modular bands, haptic feedback band, and a band with a built-in charger.

To recall, the Apple Watch Series 2 was announced at Apple's event on Sept. 7, 2016. It brought new features like GPS, a dual-core processor, water-resistance and brighter display.