According to the KGI Securities analyst, Apple won’t provide a production beyond 3 million units by the end of 2014, AppleInsider reports.
Previous estimates were more optimistic, with 5 or 10 million iWatches by the end of the year.
The analyst also suggests that the technical and software issues aren’t finished yet, which will delay the launch of the product.
Kuo says market expectations are far beyond Apple’s production capabilities mainly due to issues with the flexible AMOLED screen with sapphire cover glass.
Production could thus start in mid-November, followed by a marketing at the end of December with a limited number of copies.
The device’s AMOLED screen will be supplied by LG Display, while the touch module is set to be provided by TPK.
According to rumors, the iWatch could come in several screen sizes from 1.5 to 2.5 inches and with a slightly rectangular shape.