The Apple company recently made the decision to increase the production of the Apple Watch during this year to compensate for the high demand in the global markets. According to information coming directly from Asia, the Apple company has added a second manufacturer for the Apple Watch, the number of units to be available for delivery will increase substantially.
The Apple company has very high expectations from Apple Watch sales in the next period, so it will increase production for the Series 1 and Series 2 models, launched in the fall of 2016. Those from Compal were contracted by Apple to increase Apple Watch production , and the contribution of this company will amount to 20% - 30% of the total units delivered in 2017.
Until recently, Quanta Computer exclusively produced the Apple Watch for Apple, probably over 10 million units being manufactured annually. Compal contracting is based not only on Apple's desire to increase Apple Watch production, but also to obtain better prices for production from Quanta, which will no longer be the exclusive producer.
It remains to be seen if this optimism of the Apple company has any real basis, or those from CUpertino just want to put pressure on those from Quanta.
"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."
