Apple starts ordering Apple Watch 2 components

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Apple's diversifying its supplier base for the next-gen wearable.
Photo: Eric Heisuman

There may be disagreement over when exactly Apple Watch 2 will arrive, but Cupertino is confident enough about its plans to start divvying up component orders among companies in its supply chain.

In keeping with its recent strategy, Apple is looking to diversify its supply chain for the second-gen wearable by taking on additional manufacturers.

This includes Amkor Technology and STATS ChipPAC, a unit of Jiangsu Changjiang Electronics Technology, which will be joining Advanced Semiconductor Engineering (ASE) in building the Apple Watch 2’s system-in-package modules.

Kinsus Interconnect Technology, meanwhile, will be the substrate supplier for the next-gen device, while Samsung will repeat its job fabricating the smartwatch’s processor, mobile DRAM, NAND flash and other peripheral chips.

Given that reports suggest Apple Watch 2 may not sell a whole lot more units than the first-gen model, Apple’s desire to use more suppliers than before likely doesn’t come down solely to order numbers.

Instead, using different companies to manufacture each of its products (sometimes splitting orders of the same component between different companies) lowers the risk of Apple relying on a single supplier, while helping Cupertino maximize profits in the process.

Source: Digitimes