Apple Watch Back on Track for January Production
David Curry | | Dec 11, 2014 01:47 PM EST |
(Photo : Reuters) The Apple Watch appears to be a hit, at least on some models.
Apple has reportedly solved the issues it was having on the manufacturing line in Taiwan, and has set a goal for January 2015 for Apple Watch mass production.
The different Taiwanese manufacturing groups have been having trouble with yield rates on the Apple Watch. It looks like Apple has fixed the issues and does not see another major hiccup in the manufacturing line.
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Apple Watch is a much smaller device to manufacture, but still needs a few individual components. To make everything run right takes a lot of research and development, something Apple has been investing in for the past few years.
The smartwatch is not the first to be hit with yield rate issues as the Qualcomm Toq and Samsung Galaxy Gear also had problems. The difference is that Apple wants to manufacture 30 million units, not 1 million or 200,000.
To hit this number with spending too much on manufacturing and unit costs, Apple needs to be sure the yield rate is high before going into full production. The same issue hit Apple on the first generation iPad, but they managed to get over it with Foxconn.
Apple's will launch the Apple Watch sometime in Spring 2015. The starting price will be $349, but it is likely that the stainless steel Apple Watch will cost over $599. There will be a limited edition 18-karat gold Apple Watch, reportedly priced at $4,999.
Analysts are mixed on the views of the Apple Watch. Many believe everyone will buy an Apple Watch simply because it's Apple, and in surveys 1 in 10 users said they would purchase the smartwatch.
However, not everyone is convinced and the lack of enthusiasm from Apple fans showed some resilience to the new smartwatch. When Apple added the iPod, iPhone and iPad, it was a limited market, but the Apple Watch enters a market with the Moto 360 and LG G Watch R already available-two tough competitors.
TagsApple Watch, smartwatch, Taiwan, Manufacturing
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