apple watch series 3-73

Chip Supplier Reports High Revenues Driven by Apple Watch Series 3

A revenue report from an Apple SiP supplier indicates growth in Apple Watch 3 orders for 2018, thanks to the device’s new capabilities as a trendy wearable.

After a Systems in a Package (SiP) supplier for Apple reported over 20% revenue growth year-over-year driven by demand for the Apple Watch Series 3, Taiwan suppliers, particularly those involved in back-end packaging and testing services for SiPs, may expect to see higher revenues within the next year.

Digitimes reports that orders for the Apple Watch Series 3 will reach a new high of 23-25 million units in 2018.  This comes on the heels of new capabilities added to the Apple Watch Series 3, including Apple Pay Cash and GymKit. The Series 3 is also the first Apple Watch model to incorporate LTE, which allows cellular data connection with or without a Bluetooth-connected mobile device present.

The company, Universal Scientific Industrial (USI), saw revenue increase 23.89% in November 2017 over last year, driven mainly by fulfilling SiP orders for the Apple Watch 3. Apple assembly partner Foxconn Group is also bidding to participate in SiP orders for 2018 Watch models through its IC packaging and testing arm, ShunSin Technology. But it is more likely that the company may win orders in 2019, when Apple is expected to diversify its SiP packaging and testing orders.

For now, SiP orders make up 56% of ShunSin's total revenue, which is down from the corresponding percentage of 77% seen in 2016 as the company expands its service scope to include optical transmission and reception modules, automotive electronics, and sensing modules.

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