DIGITIMES today quoted industry sources as saying that due to profit problems, quanta computer may stop accepting Apple watch assembly orders sometime in 2020 and may sell its Changshu factory in China, which specializes in assembling wearable devices.
Since the original model was released in 2015, Quanta has been the exclusive OEM for Apple watch. In the second half of 2018, the new generation of smart watch Apple watch 4 orders made Quanta's production line operate at full capacity, but the supply still exceeds the demand. For this reason, apple chose Compal Electronics to join the mass production of Apple watch 4.
It is reported that the decline in Apple watch order profits is mainly due to the impact of the increased tariffs imposed by the United States on China. Although iMac, iPhone and iPad can avoid the 10% increase in tariffs on September 1, Apple's wearable devices, home and accessories product lines have not been spared. After September 1, airpods / beats headphones, homepod smart speakers, and apple watch smart watches will all be subject to US tariffs.