Apple said in an email to a product reviewer at the Verge that in certain instances when the Series 3 fails to fully connect with unauthenticated Wi-Fi networks, "it may at times prevent the watch from using cellular".
Apple's new Series 3 smartwatch starts shipping this Friday, and the biggest feature change between last year's model and this new Watch is that it has built-in cellular capabilities.
The company is "investigating a fix for a future software release", Apple spokeswoman Amy Bessette told Reuters.
Apple stock was down 2.1%, near 155.40, in afternoon trading on the stock market today, falling below their 50-day moving average, a key technical support level.
"Considering that my Apple Watch Series 3 with LTE (both first and second review units) didn't function like it was supposed to, I can't recommend buying it - and paying the monthly cell fee - based on promises", Verge reviewer Lauren Goode wrote. According to the Wall Street Journal, Apple Watch models it has received that connect to AT&T and T-Mobile's cellular network have experienced dropped calls; the AT&T connected model also had problems reaching Siri. Users have reported problems sending messages from Miscosoft Outlook or Exchange accounts linked to iOS 11's Mail app. Users have been receiving "Cannot Send Mail" errors, and Apple has confirmed to 9to5Mac that it is "working closely with Microsoft" to fix the problem.
Apart from connection issues, some reviewers were disappointed with the drain on the watch's battery while making calls. Apple's hopes of becoming a $1 trillion company, which isn't entirely out of the realm of possibility, rest on its ability to build up a portfolio of niche products like the HomePod, AirPods and new Apple Watch products as well as a blockbuster iPhone release.
Ars will have its own review of the Apple Watch Series 3 in the coming days.