Some smartwatch vendors have adjusted their supply chains, either by switching related suppliers or relocating production bases, to adapt to changing global micro situations in order to sustain the highest amount and stable benefits over the past two years. Among the top-5 vendors, China-based Huawei and Garmin, whose manufacturing bases are located in Taiwan, have not made much changes to their supply chains, but Apple, Samsung Electronics and Fitbit are those that have been forced to overhaul their supply chains, including efforts to build manufacturing facilities in India.
(Digitimes, August 31)
Neil Shah's key takeaways:
- Moving outside of China could help suppliers in the smartwatch market to scale faster.
- Further, Google's acquisition of Fitbit will contribute to rejigging of the supply chain in coming years.
- The intent and pressure to move design and manufacturing outside of China also means an opportunity for suppliers to scale up their relationship with growing brands like Apple.
- Samsung looking to start manufacturing in India makes it a key market for suppliers to set up base.