Reports flew in from China today, suggesting Apple Watch facing dilemmas in the production process. The yielding issues of the Apple Watch has lead the company to cut its production to half, as claimed by the Chinese UDN website. The rough estimate could be numbered from 3 million units per month to 1.5 million. The reason why Apple Watch faces dilemmas in the production process is the manufacturing of plastic OLED displays for the Apple Watch instead of opting for the glass ones. The host to manufacture these displays is LG and it seems producing plastic displays turns out to be a much harder task as compared to the glass screens.
Since LG failed to manufacture sufficient units of the displays that are ought to be used in the Apple Watch, 60 to 70 percent of the displays made by LG tend to be unusable and directly cannot meet the demand for required standard. The drastic reduction in production has lead Apple to cut down their Apple Watch yield to half of the original number.
Foxconn To Manufacture Apple Watch Displays?
Other than this issue, the real production assembly, Quanta uses different techniques in nature as compared to other manufacturing companies. The difference in technique leads to yield fewer units than the output through standard ways. A few supply chain sources stakeholder to the case suggest that the Apple Watch at the current stage successfully shipped 300,000 output units to its Watch series each month, which by figure is quite low.
Quanta is basically known for its computers and laptops manufacturing and other such stuff and it lacks the precision required to produce small sized displays. The lack of experience and expertise is another reason why Apple Watch yield has been halved. Quanta should have taken specialized measures to meet the heavy demand for Apple Watch displays.
The report emphasizes Apple's plan to reconsider the production company used to manufacture small sized displays. Foxconn is one such manufacturer to be considered by Apple who can work separately with Quanta to work for the same purpose. This can bring the overall production units to match the required demand of the Apple Watch on monthly bases. This is it for now folks, share your thought about this in the comments below.