Apple is expected to green-light production of the iWatch imminently, with the firm targeting an October launch.
Mass production will start in July, sources have told Reuters. Chinese manufacturer Quanta, which makes Apple's laptops and iPods, has been tasked with manufacturing the iWatch.
Sources say Apple is aiming to ship 50 million units in the first 12 months of release.
The iWatch is expected to ship with a 2.5in touch screen, which arcs around the wristband. Wireless charging capabilities are also tipped to be included as standard.
The wearable is expected to sync with Apple's Healthkit app and measure key metrics like heart rate, calories burnt, steps taken and quality of sleep.
By pairing with iPhones, the iWatch will be able to showcase alerts and message notifications.
LG, Samsung, Sony, Microsoft and Motorola are other prominent manufacturers eager to establish a presence in the wearable market.
The companies are using health metrics as the main selling point and wearables are expected to be the new cash cow in the midst of slowing smartphone sales.
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