The reason for Quanta's status as the only Apple Watch 2 manufacturer stems from rumors surrounding Apple's predicted low-volume production output for the second-generation wearable device. Citing "weaker than expected shipments" of the first Apple Watch, the supply chain sources point to the company's tempered production forecast for its next version of the wrist-worn device.
Apple originally considered shifting some second-generation Apple Watch orders to Foxconn Electronics (Hon Hai Precision Industry), but decided to keep all the orders with Quanta as volumes will not be high, the sources noted. Because of Apple Watch's weaker than expected shipments, Apple recently reduced the device's shipment forecast for 2016 down further from its estimate in the fourth quarter of 2015.Although Apple has remained quiet on specific sales numbers for the Apple Watch, estimates put the wearable as a consistent rival to similar products, including Fitbit, with numbers only growing in the lead-up to the holiday season last year. Recent rumors point to the possibility of an interim update for the Apple Watch in March, including only one or two new features (like a FaceTime camera), and with a proper full 2.0 model released later in the year.