Apple's (Nasdaq: AAPL) next-generation Watch is slated to enter production in Q216, according to Digitimes.

Quanta Computer is said to be sole manufacturer of the device.

While Apple was mulling a move to shift some production to Foxconn, expectations of lower-volumes changed those plans and manufacturing will stay with one company. Apple was also said to trim FY16 sales expectations for the Watch.

Despite weaker-than-expected sales, the Apple Watch still commands over 50 percent of the global smartwatch market.

Shares of Apple are up over 1 percent.