Apple has sourced Quanta Computer as the primary manufacturer of the Apple Watch since the original wearable device began a production ramp-up in late 2014/early 2015 for its official launch in the spring of 2015.
The supplier was again the sole source of Apple Watch manufacturing for the Series 2 models in 2016, and a new article out today by Chinese-language site Economic Daily News has echoed previous reports that stated Apple will yet again keep Quanta as its main Apple Watch supplier for the so-called "Apple Watch Series 3." The move is expected to lead Quanta into a "strong" second half of 2017, further cementing the next-generation Apple Watch's debut this upcoming fall (via DigiTimes).
Additionally, Quanta's income towards the end of the year is poised to rise thanks to the manufacturer's supply of notebooks and servers, but the Apple Watch Series 3 is described as one of the company's biggest assets. Secondary to Quanta, EDN's report today cited market watchers who believe Compal will also be sourced as an Apple Watch supplier this year, but with a focus on older-generation models and not including Series 3.
Quanta Computer is expected to enjoy a strong second-half 2017 thanks to rising demand for notebooks, growing server sales and the release of the next-generation Apple Watch, according to a Chinese-language Economic Daily News (EDN) report.
Apple is reportedly planning to launch its third-generation Apple Watch in 2017 and the wearable is likely to help Quanta's Apple Watch product line turn profitable. Although Compal Electronics reportedly has joined the supply chain of the Apple Watch, the market watchers believe Apple is likely to let Compal mainly handle older-generation models, the paper added.
While rumors leading into the fall of 2017 have largely focused on the iPhone 8, it is believed that Apple will launch an all-new Apple Watch device this year, perhaps at the same iPhone debut event expected in September. The company used that strategy last fall when it announced and launched the iPhone 7, iPhone 7 Plus, and Apple Watch Series 2 within the same September timeframe.
Besides the expected new-generation bumps to processing speeds and a longer battery life, Apple Watch Series 3 has been rumored to include cellular connectivity so users could make phone calls, send iMessages, and stream Apple Music without needing to be tethered to their iPhone, with the caveat of an added data plan likely. The Series 3 device is also said to not include any major visual overhauls to the Apple Watch design, keeping the same case and band form factor that Apple has used since 2015.
