Quanta Computer could stop making Apple Watches and give its dedicated assembly facility the boot sometime next year, according to sources in China.
It is believed the company currently has “profit concerns” with Watch manufacturing.
Quanta has been an Apple Watch assembly partner since the first model was introduced in 2015. In fact, it was the only Watch assembler until Apple added Compal Electronics last year.
Quanta still makes the majority of Watches manufactured today, with Compal only chipping in as a secondary supplier. But that could change in 2020 as Quanta looks for an escape.
Quanta wants to ditch Apple Watch assembly
“Quanta Computer is likely to stop taking assembly orders for the Apple Watch next year due to profit concerns,” reports Digitimes, citing industry sources.
The Taiwanese firm may even “sell its Changshu plant in China” dedicated to Watch assembly.
It’s not completely clear what those profit concerns are. Apple Watch remains a big seller, and it has previously been reported that Quanta is riding high on the back of Watch sales.
It seems strange, then, that it might not be making enough from Apple’s wearable device, which easily outsells its biggest rivals year after year.
Apple Watch Series 5 out now
Apple is yet to comment on Apple Watch Series 5 sales. But we know Series 4 was a success following its introduction last fall.
The new model is almost identical as its predecessor, but brings Apple Watch’s first always-on display and digital compass. It’s also available with a ceramic or titanium chassis.