Two Taiwanese suppliers have won the orders to build the expected and much-anticipated iWatch for release in 2014, according to a Taiwan-based analyst and local reports.
Quanta and Inventec will split the orders 60:40, and could build up to 38m units next year, suggested the Appledaily website.
Apple has not yet announced the production of such a device, but the possibility of an iWatch has been the subject of growing speculation since reports surfaced earlier this year that Apple had a team working on a 'wearable device'.
A smart watch could connect to a user's phone and provide updates and info without them having to consult their phone directly.
Pebble Technology has already sold 85,000 of its Pebble watches after a crowdfunding campaign raised $10m.
Apple's interest was noted after it filed for an "iWatch" trademark in Japan in July, and more recently hired a Nike executive for an undisclosed post.
An "iWatch" would probably be unveiled early in 2014 to assess the broader market - but will be playing catch-up against rivals including Samsung, which is preparing to unveil its own "Gear" watch device on 4 September at the IFA event in Berlin, and Google, which is expected to put its head-worn "Glass" product into commercial production during 2014, having already begun "Explorer" trials with thousands of users in July.
Apple said it did not comment on rumours or speculation.