Apple Inc. the Cupertino tech giant's Watch Series 2 had attained the top spot in the smartwatch segment in the tech market. A fresh report on Apple Watch Series 3 hints the arrival in later this year. Apple Watch Series 3 is expected to be loaded with top class and innovative features that will set it apart from the other rival smartwatch makers.

According to Digi Times, the report cites industry sources that TPK Holding was seen struggling to profitably produce enough of the displays which was used by  Apple for its smartwatches so far.

It is reported that TPK Holding is the supplier of G/G touch panels for Apple Watch. These 2 pieces of glass panels have been supplied by the TPK for two years. The reports from industry sources claim that Apple's adoption of TOL (touch on lens) type of glass panels in the Watch Series 2 in 2016 resulted in TPK unable to hike yield rates for TOL touch panels to a reasonable level.  

It is reported that the production of touch on lens panels was difficult because the curved surface of Apple Watch screens complicated the manufacturing for touch sensors. This resulted in the low yield rates which finally resulted in the losses for the company in 2016.

The report also notes that TPK Holding will maintain its focus on 3-D sensor-based touch panels for smartphones and will stop production of touch panels for the Apple Watch in 2017.

The report also cites that Apple will go with G/F (glass-film) touch solution in place of TOL in the Watch Series 3 smartwatch. It indicates that G/F touch panels will be produced by Taiwan-based General Interface Solution or Hong Kong-based Biel Crystal Manufactory.

Also, sources claim that the G/F (glass-film) touch panel shipments to begin in the second half of 2017. This report on shipment indicates that Apple Watch Series 3 will hit the tech market by third quarter of 2017. Apple Inc. has not made any official statements yet on its next smartwatch. Stay tuned for more updates.