Compal will produce Apple Watch and Apple Watch Series 2 to account for 20-30% of total shipments initially and is setting up assembly capacity at its factory in Kunshan, eastern China. Compal will begin shipments as early as the fourth quarter of 2017. Quanta Computer is currently the sole OEM for Apple Watch, and Apple's move to add of Compal is to decrease Quanta's price bargaining power as well as increase total assembly capacity due to an optimistic sales outlook for the device, EDN indicated.
Apple may also be planning to shift second generation Apple Watch production to Compal ahead of the Apple Watch 3 which will reportedly debut in the second half of 2017.
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