The issue appears to arise when, without an iPhone nearby, certain Apple Watch Series 3 review units "may attempt to connect to unknown Wi-Fi networks" instead of an LTE network, according to a report from The Verge.
Apple says it's "investigating a fix for a future software release".
The Apple Watch Series 3 was announced just last week and is being prepared for shipment.
Apple has responded however, telling the Verge that it had discovered an issue with the Watch Series 3 connecting to unauthenticated WiFi networks without connectivity, and that it seemed to affect the device's ability to use cellular networks. If you haven't ordered one yet, it's probably best to hold off, or opt for the non-cellular version, which includes the other Series 3 benefits like a faster processor and barometric altimeter.
Apple Inc. shares were trading at $155.89 per share on Wednesday morning, down $2.84 (-1.79%). At one point during the show, a woman paddle boarding without her smartphone (but wearing the new Apple Watch) stood on her board and called into the event, demonstrating the smartwatch's ostensible independence.
Problems with Apple watch connectivity cropped up on three different pre-production models, across two states and on two different carriers, Stern said.
Reviewers have also criticized a cosmetic change in the Apple Series 3 watch.
CNET's Scott Stein dinged the newest model for battery life and monthly fees for a cellular connection.
"Audio quality for phone calls on the watch is very good", Gruber wrote. What's not entirely clear, of course, is whether or not all of Apple's earliest Watch S3 shipments will be plagued by this issue, however it's certainly a good thing to know the company is already working to fix it, right? I'll update this post when I hear back.