ORIGINAL STRENGTH: Although the assembler has been trying to diversify its business away from PCs, the firm predicted it would outperform others in the segment this year

Taipei Times
Date: Mar 20, 2018
By: Lisa Wang  /  Staff reporter

Compal Electronics Inc (仁寶), which has been contracted to assemble Apple Watches, yesterday said it expects non-PC product shipments to grow between 15 and 20 percent year-on-year next quarter, as it is to start shipping new products for a key customer by summer at the earliest.

The company has for years been working to diversify into new areas in search of growth beyond the sputtering PC industry. It last year made significant progress as its non-PC business was responsible for more than 30 percent of its overall revenue totaling NT$887.66 billion (US$30.4 billion).

Compal broke into the Apple Watch supply chain in the first half of last year, ending Quanta Computer Inc’s (廣達) position as sole assembler for the US firm.

“We have invested resources in developing new products in the fourth quarter of last year, which will put pressure on the margin in the non-PC segment in the initial stage,” company president Ray Chen (陳瑞聰) said in response to an investor’s question about Compal’s venture into smart watches and, more specifically, the Apple Watch. “We will ramp up production of the product by late second quarter this year, or early third quarter.”  [FULL  STORY]