As reported by DigiTimes, Apple contractors which are mostly Chinese component suppliers are ready to start producing the components which will be used to assemble the Apple Watch. Based on the first batch of orders, supply chains estimate Apple to turn out an initial 30 million to 40 million Apple Watch units as comparison of Samsung’s Galaxy Gear smartwatch which was sold up to 800,000 pieces during the first two months on sale.

For Apple Watch, Apply is using advanced system-in-package (SiP) technology that is an enhancement for the current A-series chip designs. This enhancement will include an entire computing system on a single chip. This chip is popular by the name of “S1” is a Apple Watch SiP which is customized piece of Silicon which stacks and integrates multiple subsystems into a small area small enough to fit within the wristwatch’s small structure.

There is no further detail about S1 apart that it will be the industry first. In a video for the Apple Watch revealed in September, Apple SVP of Design Jony Ive said that S1 is entirely encapsulated in resin for superior protection against the elements.

Additional feature of S1 SiP includes Force Touch Retina display which is capable of discerning taps from presses, Wi-Fi and Bluetooth connectivity, Taptic Engine for haptic feedback, NFC for Apple Pay, wireless inductive charging and a Digital Crown for OS navigation and invoking Siri. It is rumored to be available in the market in Feb.14 2015 but analysts predicted that it will be delayed to the second quarter of 2015.