Official sales figures of the Apple Watch continue to be under wraps at the moment. A supply-chain report, however, has emerged saying Apple has allegedly slashed its Apple Watch forecast for 2016 from its estimate in the fourth quarter last year.

DigiTimes, citing anonymous sources, has reported that the second-generation Apple Watch is purported to enter mass production in the second quarter of this year, with Quanta Computer being the lone manufacturer of the wearable device.

Apple has reportedly made a decision to move some second-generation Apple Watch orders to Foxconn Electronics (Hon Hai Precision Industry) from Quanta. However, DigiTimes says the company has ditched the idea and decided to keep its orders with the current manufacturer “as volumes will not be high,” according to its sources.

The Cupertino-based company has reportedly cut the Apple Watch's 2016 shipment forecast due to "weaker than expected shipments” during its first year on sale.

The report, nevertheless, notes that Apple's timepiece was able to notch 50 percent share in the smartwatch market at the end of last year.

It's no secret that Apple does not push out a report with regard to its Apple Watch shipments, and word has it that poor sales for its smartwatch might be among the key reasons.

Previously, Apple boss Tim Cook hinted that the company “set a new quarterly record for Apple Watch sales... especially strong sales in the month of December.” However, the company has not revealed specific numbers.

In the meantime, speculation is rife that Apple is already working on the second-generation Apple Watch, which is expected to come out not later than September 2016. This new version of the Apple Watch will be fitted with an enhanced hardware and a new design.

Furthermore, the International Data Corporation (IDC) has forecasted that shipments for smartwatches this year may reach 34.3 million units. IDC also said Apple’s smart timepieces may lead the race.

“Apple’s watchOS will lead the smartwatch market throughout our forecast, with a loyal fanbase of Apple product owners and a rapidly growing application selection, including both native apps and Watch-designed apps,” it said.