Apple wants to bring Touch ID to its watches starting next year
Briefly

Internal Apple developer code references "AppleMesa", Apple's internal codename for Touch ID, indicating exploration of adding a fingerprint sensor to Apple Watch models. The feature is likely in prototype stage and not expected on watches releasing this year. Potential debut is as early as next year, possibly on the Apple Watch Ultra 4. Sensor placement options include embedding the sensor into a physical button, integrating an optical in-display fingerprint sensor, or placing it within the side button. Separate rumors suggest the watches may receive a major redesign next year and that 2026 models could include a new processor.
According to a new report purportedly based on internal Apple developer code, the company is currently busy exploring ways to bring Touch ID (aka a fingerprint scanner if you don't live in Apple's world) to its watches. This will arrive next year at the earliest, so presumably on the Apple Watch Ultra 4. The code in question specifically references "AppleMesa", which has long been the company's internal codename for Touch ID.
Since the code is for internal use only, the idea is most likely still in the prototype stage. Hence, none of the watches coming out this year will have the feature. If you're wondering just where a fingerprint sensor would even go on a watch, the answer is quite simple when we look at smartphones - basically, it's either going to be embedded into a button, or into the screen.
Read at GSMArena.com
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