Apple adds firms to watch portfolio

Apple watchReports that demand for the Apple watch is such that the company may have trouble supplying the demand it has created has caused it to seek new manufacturing partners.

A report on Taiwanese wire Digitimes said that it has added Compal and Wistron to its existing clutch of Far East suppliers.

But it’s not just demand that’s causing it to choose these two original design manufacturers (ODMs).

Apple plays the game of setting its suppliers against each other so they compete on cost and allow the US firm to increase its gross margins on products.

The same report on Digitimes claimed that it’s not just the Apple watch which will be built by the two Taiwanese ODMs – they will also have a share in making iPhones.

A market research firm – Slice Intelligence – believes that 957,000 Americans placed firm orders for the Apple watch.

Meanwhile, Google is reacting to Apple’s launch by introducing new features to its Android Wear software.

Updates to the Google Android Wear software will apply to the seven models of watches available on the market.