The company plans to reveal the device, which went unnamed in a report by Re/code, at an event in October. Apple is expected to make use of HealthKit, a health and fitness information app that it announced at its conference this week.
Nikkei also reported that Apple will manufacture three million to five million units each month.
Apple watchers have speculated for quite some time about Apple’s plans for wearable electronics including a watch unofficially dubbed iWatch. The planned device is expected to track sleep, calories, blood glucose and blood oxygen levels. Users will also be able to use the device to read messages sent by their smartphones, according to the report
More details about the new device have yet to be released, although it will likely use an upgraded mobile operating system for smartphones and tablets.
Nikkei also said that Apple (AAPL) is pairing up with Nike (NKE) in order to combine their services, although its unclear in what capacity.
(Story was updated with new headline and additional information)