• Apple Facing Yield Issues for its Upcoming Apple Watch, Tapping Foxconn for Help

    As the Cupertino California company prepares to launch the Apple Watch on April 24, the company appears to be facing yield issues as it continues to tweak its suppliers as it works to bring the device to the public. The news comes from Cowen and Company analyst, Timothy Arcuri, who went on a trip through the tech supply chain in Asia, speaking with local companies about the production of the Apple Watch. The companies indicated that various yield and supply issues continue to remain present as of right now.

    In a note to his investors, Arcuri reveals that Apple seems to be trying to add Foxconn as an assembly partner for the Apple Watch in an effort to boost yields. Up until now, Quanta Computer was the only assembly partner for the Apple Watch as the company outbid Foxconn and Inventec.

    One of the reasons that the Apple Watch appears to be facing yield issues is because the centerpiece of the device is an AMOLED display that is estimated to be far more costly than your average LCD screen (which is found in traditional watches). On his trip to Asia, Arcuri was led to believe that long-time Apple rival, Samsung, will be supplying OLED screens to Apple for the Apple Watch.

    Although the OLED display has been embraced by the Cupertino California company for the Apple Watch, itís unlikely that the same technology will be used for upcoming iPhone models. According to Arcuri, it will likely take a few more generations and improvements for Samsungís investment in in-cell touch panels to pay off and debut in an iPhone. The one thing that Arcuri pointed out that was particularly interesting was the fact that supply chain sources indicated that a ď2.0 versionĒ of the Apple Watch was set to arrive later this year. The analyst didnít indicate whether the sources were referring to a software update or an entirely new piece of hardware. Although itís unlikely that Apple would revise the device in such a short timeframe, it is rumored that the company is planning to expand the lineup with new models. Rumors have already been mentioning the release of new Apple Watch models with different casing materials set to go into production later this fall.

    Weíll have to see how much demand the Apple Watch stirs and how well Apple has prepared for the device launch as launch day gets closer.

    Source: Cowen and Company via AppleInsider
    This article was originally published in forum thread: Apple Facing Yield Issues for its Upcoming Apple Watch, Tapping Foxconn for Help started by Akshay Masand View original post
    Comments 6 Comments
    1. SpiderManAPV's Avatar
      SpiderManAPV -
      Rumors about apple watch two before the first is even out?
    1. sheltons.iphone's Avatar
      sheltons.iphone -
      It's a shame that you can basically buy a phone full price and it be cheaper than some stupid watch (Stainless band) that you still need a phone to make work. I'd rather buy a real watch from a real, established brand for that price. The sport versions look cheap to me and all these other options are way too expensive. As much as I love the iPhones, Apple is starting to push me away from their other products. Macs are wayyyy too expensive, and now these watches?
    1. javiert30's Avatar
      javiert30 -
      Here we go again...
    1. bigboyz's Avatar
      bigboyz -
      HAHA! The Apple Watch is a choice not a mandatory acquisition. Plenty of other Smart watches to choose from if you feel that the Apple Watch is too pricey.
    1. charliebordelon84's Avatar
      charliebordelon84 -
      Yea but me personally I might buy two. One for each wrist! If you can't afford one don't buy one.
    1. Jahooba's Avatar
      Jahooba -
      Yeah, if money was no issue I'd probably buy five. But then, if money were no issue I wouldn't need a watch!
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