Apple Likely to Expand Apple Watch Supply Chain Following Third Quarter Sales Growth

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Apple is likely to expand its supply chain for Apple Watch, following significant unit growth for the wearable over the third fiscal consecutive quarter this year (via DigiTimes).

Apple Watch's overall shipments are expected to reach at least 25 million units in 2018 and most of the sales will be contributed by first-time buyers instead of replacement demand from users of previous-generation models, the sources estimated.

During last week's earnings call, Apple CEO Tim Cook said Apple Watch had seen unit growth of over 50 percent for the third consecutive quarter and "continues to be the best selling and most loved smartwatch in the world".

The fiscal quarter ended September 30, so it's not clear how many Apple Watch Series 3 units were included in the recorded growth and Apple doesn't provide a breakdown of numbers. The Apple Watch Series 3 was released on September 22. Cook also revealed that Apple's entire wearables business was up 75 percent year over year in the fourth quarter, and in fiscal 2017, already generated the annual revenue of a Fortune 400 company.

Apple's upstream suppliers include Quanta Computer, Universal Scientific Industrial (USI), Career Technology, Kinsus Interconnect Technology and E&R Engineering, all of which are expected to see increasing orders for the Apple Watch, according to sources.

Foxconn affiliate ShunSin Technology has also recently landed orders for providing SiP (system in package) packaging services to Apple Watch and are said to begin the supply in March 2018. The fact that ShunSin is entering the supply chain means Foxconn may also have interest in obtaining Apple Watch assembly orders, according to market watchers.

Related Roundups: Apple Watch, watchOS 6, watchOS 7
Buyer's Guide: Apple Watch (Caution)

Top Rated Comments

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36 months ago
Huge fan of my Apple Watch S0. Workout tracking (weights and cardio), directions (walking and cycling), Apple Pay, Notifications, addictive Activity rings, Complications (especially useful for a busy work schedule, can quickly easily see when my next meeting is), Camera Remote etc. etc. Not surprised these things are selling well with great customer satisfaction.

Wish mine was faster, but it's not slow enough that I'll pay for a new one just yet. Looking forward to see how the product evolves, especially as others have mentioned in terms of medical monitoring.
Score: 2 Votes (Like | Disagree)
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36 months ago

Makes sense. With cellular and gps its finally a somewhat worthy product. But personally I have played with one and just cant stand trying to navigate on that tiny screen. The phone is all I need.

Over the past few years, it became clear that the watch is nowhere nearly as useful in native apps than with notifications, quick iMessage responses, and useful modular watch faces. Don’t judge the watch by app navigation, because most people don’t even use those controls on a day to day basis.
Score: 2 Votes (Like | Disagree)
Avatar
36 months ago
Got the Apple Watch 0, and returned it after 10 days, couldn't stand how slow and to be honest pointless it was. Apps didn't work, HR was every 10 mins WHEN YOUR NOT MOVING (what the hell is that about? So stupid!) But you know what, the Apple Watch 3 is starting to turn me, its fast has GPS and emergency sos is an amazing feature if needed. Actually think I'll get one for Christmas this year. The more medical capabilities Apple put into this device the more people will want it, if they added a new hardwear feature I would seriously buy a new one every year, version0 was a joke, but they are getting there now with every release, it's really turning into something that could actually change lives and hep people live years longer! I would get a cheaper one like version2 but I actually think seen as I'm not going to buy one every year the version3 is my best best for futurproofing the next 2-3 years without loosing to much functionality.
Score: 2 Votes (Like | Disagree)
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36 months ago
I love the Apple Watch series 3 for the fitness tracking. I've had it for over a month and lost 11lbs. It's given me the motivation to run everyday.
Score: 1 Votes (Like | Disagree)
Avatar
36 months ago

It starting to feel like that. Took a few generations of iPods to see the explosion of market share.

Making it Android compatible is likely the next move.

You dont go iPhone just for using the AW, but once you enjoy the AW on Android there may be an halo effect at play similar to what the iPod did for the Mac.
Score: 1 Votes (Like | Disagree)
Avatar
36 months ago

iPod trajectory.

It starting to feel like that. Took a few generations of iPods to see the explosion of market share.
Score: 1 Votes (Like | Disagree)

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