According to a new report by DigiTimes, Apple supply chain partner ASE Technology is packaging core chips for third-generation AirPods and at least two new Apple Watch models based on its system-in-package technology (via MacRumors).

The Taiwanese publication is claiming that the third-generation AirPods will be released in 2021, which is in line with the timeframe previously provided by veteran Apple analyst Ming-Chi Kuo.
Other reports have suggested the upcoming AirPods will sport an AirPods Pro-like design featuring shorter stems and in-ear tips.
As for the new Apple Watch models, a report from last week claimed that Apple’s new Apple Watch lineup will include a successor to the Apple Watch Series 5 and a lower-cost replacement for the Series 3.
New Apple Watch models are expected to launch alongside the new iPhones in October, featuring a new S6 processor, expanded health capabilities, including blood oxygen monitoring, and improved Wi-Fi, and cellular speeds.
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