Apple continues to be the subject of rumors, with the latest one claiming the tech giant will begin production for its new 12-inch MacBook Air in the first quarter of 2015.

People with knowledge of the situation said mass production of the device has yet to begin due to low yield rates, but added that this issue is being gradually resolved, according to Digitimes.

In addition to the 12-inch retina display, rumored features of the new MacBook will include Intel's Broadwell processors and a new chassis design aimed at reducing the overall weight and thickness of the notebook computer.

The rumor matches up with previous reports, such as Apple's development of a new form factor that will provide the laptop with a button-less trackpad and a fan-less cooling system, Mac Rumors reported. The report also follows a month after Intel launched its new ultra-low power Broadwell Core M processers.

The MacBook Air is also expected to get to be offered in space gray and gold, which would be the first time Apple offered any color options in its MacBook line since it released the first-generation polycarbonate models in black or white in 2006 and stopped in 2011, the International Business Times reported.

The sources also said production for the device will be taken care of by Quanta Computer, which will also handle production of the upcoming Apple Watch rumored for a spring 2015 launch.