Quanta hit by Apple iWatch

WatchTaiwanese original developer manufacturer (ODM) Quanta may well find its profits depend on two variable products Apple is introducing – the Apple iWatch and the 12-inch Macbook.

A UBS analyst, quoted in today’s Taipei Times, thinks that Quanta will find putting the Apple kit together will be more expensive than first thought.

And products made by Quanta may not be available until the end of this calendar quarter. Another variable factor is that while Apple has received lots of press coverage for its smart iWatch, it’s entirely possible sales might not pan out to be as great as the hype suggests.

Quanta, like many of the major Taiwanese ODMs, operates on razor thin margins – for the last quarter of 2014 it amounted to a measly 1.26 percent.

Analyst Wang Wanli is quoted as saying in the Taipei Times that the Apple watch yield is less than 50 percent – compounded by the need to rush to market and get good production yields right away.