On the morning of November 14th, Taiwan’s Economic Daily reported that The market was saying that Quanta would pull out of its Apple Watch assembly business in order to make a profit. In this regard, Quanta Chairman Lin Baili stressed that “making money is the most important”, if some products are too labor-intensive, has been doing not so meaningful. Taiwan’s Economic Daily said Mr Lim’s comments appeared to suggest that Quanta would gradually fade out of the Apple Watch assembly business.
Reported that the Apple Watch contract business has become the three pillars of Quanta’s operations, although Quanta did not disclose related revenue, but the market generally believed that revenue may be as high as hundreds of billions (NTD), once Quanta out of the business, will make revenue decline a lot.
It is reported that Quanta from the first generation of Apple Watch assembly, is the first to cut into the business of the foundry, apple Watch is also the main assembly manufacturer, but the business has grown for many years, despite the huge revenue for Quanta, but the profit contribution to Quanta has not been seen.
On the 13th, some media asked Quanta next year whether to withdraw from the wearable sand business.
In this regard, Quanta Vice Chairman Liang Tse-zhen pointed out that many products are wearable equipment, Quanta never said to leave, the words are some manufacturers in the talk。 Liang added that Quanta would carefully measure what to do and what should be reasonably controlled. He stressed that revenue is useless to see EPS, profit is important, revenue is not the focus.
Quanta chairman Lin Baili stressed that “the other is not important, making money is the most important”, if some products are too labor-intensive, doing it is not so meaningful.
Earlier, Taiwan’s Electronic Times newspaper also quoted industry sources as saying that Quanta could stop accepting Apple Watch assembly orders sometime in 2020 and possibly sell its changly factory in China, which specializes in wearables, because of profit sprees.
Later, the Electronic Times quoted industry sources as saying that Inpo Electronics and Foxconn had received orders for the 2020 series of Apple Watches, while China-based Lixun Precision might assemble older Apple Watch devices.