Apple iWatch "due late next year"

Apple has reportedly started work on its long-anticipated "iWatch", but teething problems with engineering mean the device won't arrive until late next year.

The company is on a hiring spree to bulk up its in-house design and engineering talent, a source has told the Financial Times, amid concerns its own staff may not have the necessary skills.

According to the source, Apple has been hiring new staff "aggressively" in recent weeks, predominantly by buying other companies, to tackle "hard engineering problems that it has not been able to solve". That means the watch is unlikely to see the light of day until the end of 2014 - if Apple decides to launch it at all.

Apple has long been rumoured to be working on the iWatch, with earlier reports suggesting the device will be made of curved glass. It may run on a customised version of iOS and could be capable of making mobile payments using Apple's Passbook system. It will likely also feature Apple's voice assistant, Siri.

It wouldn't be the first time Apple has tinkered with the watch concept. The seventh generation iPod nano could be used as a watch, with several third-party manufacturers developing straps for the device.

Rumours of the watch's development come amid investor concerns that Apple is no longer producing groundbreaking products – such as the iPod, iPhone or iPad – since the death of co-founder Steve Jobs. The company's share price has continued to tumble, down to $US426; well below previous highs of more than $US700.

CEO Tim Cook has previously promised "more game changers from Apple in response to criticism and claimed that wearable tech is an area "ripe for innovation".