Quanta has invested heavily in equipment for Apple Watch's manufacturing, but its profit return from the device has been weaker than expected. This is a concern for the ODMs that have been approached as a secondary supply partner, the paper added.Also mentioned in the report is Apple's ordering of 4 million Apple Watch units for the fourth quarter of 2015, slightly down from the original 6 million planned in preparation for the holiday season since demand is "not as strong as expected." Still, the company expects sales for the wearable device to surpass 10 million units by the end of the year, before leading into the rumored launch period of the Apple Watch 2 sometime in the second quarter of 2016.
Today's news comes after Quanta Computer's chairman Barry Lam was reported to have commented on the impending manufacturing process of the Apple Watch 2, giving the device a launch window sometime late in Q2 2016 and higher volume shipments beginning in Q3. Little is known about the second generation Apple Watch, besides a few rumors that pointed to the possibility of a thinner device, integrated FaceTime camera, and a growing independence from the iPhone.