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China firms enter supply chains for new Apple Watch, iPad

Luxshare Precision Industry is a secondary supplier for the Apple Watch Series 6, while BYD is among the suppliers for the new Wi-Fi iPad series, according to industry sources.

Foxconn Technology Group (Hon Hai Precision Industry) and Compal Electronics are the main suppliers for the new Apple Watch and iPads at the moment, but based on Chinese makers’ production quality, prices and extent of cooperation, the US-based brand is likely to shift more orders to Luxshare and BYD, the sources said.

Compal expects its non-PC product shipments to grow every quarter in the second half of 2020 with volumes to outperform those in the first half of the year. Compal’s goal of having 35% of revenues coming from non-PC product line is also expected to be achieved in 2020 as demand for tablets is significantly boosted by stay-at-home activities.

Compal is also the largest supplier of Android-based wearables and the product line is showing significant potential for further growths.

In the wake of the US-China trade tensions, Apple is now seeking more Chinese suppliers to satisfy China’s domestic demand, while for non-China markets, Apple will rely more on Taiwanese makers to help it establish production sites outside of China.

Apple is currently having Quanta and Foxconn manufacture Mac series products in the US. In India, Foxconn, Wistron and Pegatron are set to manufacture iPhones locally to mainly cater to domestic demand. In Vietnam, Compal, Foxconn, Pegatron and Inventec have plants manufacturing iPads, AirPods and iPhones at the moment. DigiTimes

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