Taiwan’s Quanta Computer Inc (廣達電腦), the world’s top contract laptop maker, is to start mass production of Apple Inc’s first smartwatch next month, a source familiar with the matter said, as the US tech giant tries to prove it can still innovate against South Korean rival, Samsung Electronics Co Ltd.
The still-unnamed watch, which Apple followers have dubbed the iWatch, is expected to be the company’s first foray into a niche product category. Many remain skeptical about wearable devices, especially as to whether they can drive profits as growth slows in tech gadgets.
The production would be a boost to Quanta, whose work for Apple so far has focused on laptops and iPods, product lines that are in decline.
Photo: Bloomberg
However, Quanta’s role is likely to raise questions about what involvement Hon Hai Precision Industry Co (鴻海精密), one of Apple’s biggest suppliers, is to play in production.
While the watch has been widely expected, the start date of its mass production and the extent of Quanta’s involvement were not posited until now.
Mass production is to start next month and the commercial launch could come as early as October, according to the source and another person familiar with the matter.
The sources requested anonymity because Apple’s production plans are private.
Apple is to introduce a smartwatch with a display that likely measures 2.5 inches diagonally and is slightly rectangular, one of the sources said.
The source added that the watch face would protrude slightly from the band, creating an arched shape, and would feature a touch interface and wireless charging capabilities.
The source said Apple expects to ship 50 million units within the first year of the product’s release, although initial estimates are subject to change.
The wearable device is in trial production at Quanta, which is expected to be the main manufacturer, accounting for at least 70 percent of final assembly, the source said.
Like many other smartwatches, Apple’s watch is expected to be able to perform some functions independently, but tasks like messaging and voice chat would require connection to a smartphone, the source said.
The device is to work only with gadgets running Apple’s iOS, like its iPhone, one source said.
Most mainstream smartwatches collect data about the user’s heart rate and other health-related metrics, in addition to facilitating tasks like checking e-mail and making phone calls.
A third source said LG Display Co Ltd is to be the exclusive supplier of the screen for the gadget’s initial production run.
The device is also said to contain a pulse monitor. Singapore-based imaging and sensormaker Heptagon is on the supplier list for that feature, two other sources said.
Apple declined to comment. Quanta, LG Display and Heptagon also declined to comment.
Apple’s smartwatch would follow similar devices by Samsung, Sony Corp, Motorola and LG Electronics Inc — gadgets that tech watchers say have not been appealing or user-friendly enough to ignite a wave of mass adoption.
However, the market is growing fast, with data firm IDC saying that worldwide shipments of wearable computing devices, including smartwatches, would triple this year over last year.
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