Skip to main content

Apple reportedly adds second Apple Watch manufacturer to boost production capacity

Apple has added a second Apple Watch manufacturer, according to China’s EDN (via Digitimes). The report claims that this is in part to boost total production capacity in the light of ‘an optimistic sales outlook for the device’ …

Compal Electronics will produce Apple Watch and Apple Watch Series 2 to account for 20-30% of total shipments initially and is setting up assembly capacity at its factory in Kunshan, eastern China. Compal will begin shipments as early as the fourth quarter of 2017.

Quanta Computer currently has an exclusive contract to make the Watches.

It should be noted that supply chain reports tend to be more reliable on the ‘what’ rather than the ‘why.’ Suppliers would not be privy to Apple’s reasons for the move.

The report acknowledges that increasing Apple’s bargaining power with Quanta is likely to be part of the motivation. A bigger factor is likely reducing risks: Apple likes to have multiple suppliers for its products so that it is not dependent on single sources of either components or assembly.

Apple was recently reported to have a secret team working on measuring blood sugar levels through the Watch as the ‘holy grail’ for those with diabetes.


FTC: We use income earning auto affiliate links. More.

You’re reading 9to5Mac — experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Don’t know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel

Comments

Author

Avatar for Ben Lovejoy Ben Lovejoy

Ben Lovejoy is a British technology writer and EU Editor for 9to5Mac. He’s known for his op-eds and diary pieces, exploring his experience of Apple products over time, for a more rounded review. He also writes fiction, with two technothriller novels, a couple of SF shorts and a rom-com!


Ben Lovejoy's favorite gear

Manage push notifications

notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications
notification icon
We would like to show you notifications for the latest news and updates.
notification icon
You are subscribed to notifications