The second-generation Apple Watch is not expected to hit retail shelves until the latter half of 2016, but when it does, Apple fans can expect a thinner, more powerful device that will hopefully address some of the issues with the current Apple Watch.

The news comes from Apple Insider, citing a research memo obtained from Cowen and Company, which recently conducted a tour of Apple's Asian suppliers. It is not clear, however, if the memo is fact-based or purely speculative.

However, it does make sense for Apple to want to make a thinner Apple Watch. The company is known for its preference for thin devices to the point of sacrificing certain features, such as battery life. The iPhone 6s and iPhone 6s Plus, for example, are slightly thicker than their predecessors because of the addition of 3D Touch, but to keep their profiles slim, Apple has decided to use a smaller battery for its new iPhones.

As for making a more powerful Apple Watch 2, no details were provided, although we are expecting the next-gen Apple Watch to load apps more quickly, provide smoother transitions between screens, and generally pack in more features than what is currently available on the Apple Watch.

Analyst Timothy Arcuri of Cowen and Company also predicts Apple will sell 18 million Apple Watches by the end of 2015 and 45 million in 2016, although he says the forecast for next year is conservative, given the strength of the numbers this year.

Very few rumors have emerged about the Apple Watch 2. Surprisingly, the supply-side sources coming from Apple's Asian production line have remained mum about what the new Apple Watch could bring, which might further hint at Apple's mid- to late 2016 release of its new smartwatch.

In July, however, South Korean website Naver (via G for Games) reported that Apple was in talks with LG and Samsung to produce P-OLED displays for the next Apple Watch. P-OLED displays are thinner than the OLED sapphire crystal display on the current smartwatch.

This is reportedly so that Apple can incorporate a bigger battery into the next Apple Watch, as the one-day battery life is the biggest complaint Apple Watch users have so far reported. There aren't very many smartwatches that can go beyond two days on a single charge, unless they make major compromises such as giving up the color touchscreen for an e-ink display. Clearly, a better battery on the next Apple Watch should convince more users to pick up Apple's most personal device.

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