Apple will begin assembling the smartwatch with Taiwanese based manufacturer Quanta Computer in January according to the report.
The report says Apple have made a deal so Quanta cannot manufacture or assemble smartwatches for rival companies like Samsung and Motorola.
Quanta’s preparation for the task allegedly involves increasing it’s workforce by 40,000 heads.
Apple unveiled the Apple Watch in September and outlined a release date of early 2015. For more information on Apple’s first wearable read our Apple Watch: What you need to know.