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According to the China Times the expected Apple smart watch "iWatch" is already in the production lines based in china.
The adopted technology by apple is called SIP "System In Package" which will be including all components in one package, and this is why the lunch of the the Apple smartwatch is a little late compared to the Galaxy Gear...
Rumors are telling that the iWatch is expected to be inveiled at the same time with the iPhone 6.
All we have to do is waiting for Apple's next conference expected in the 2nd june in San Francisco to descover more information about the iphone 6, the iOS 8 and the iWatch

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