When it is Apple Smartwatch, one can expect news flowing in from different sectors. Now investment bankers have decided to rake in some lucrative profits by tracking down suppliers of Apple iWatch components. The sole purpose is to help their investors with some valuable trading advices which in turn mean big businesses for the investment banker too!
J.P. Morgan is the first to explore this opportunity by coming up with a list of suppliers of key components who are shaping up the Apple wearable, with special stress on display and processor segments. Here are few interesting and helpful information which J.P. Morgan has decided to share with its investors.
– The EMS part is completely handled by Taiwan based Quanta Computer, with revenue exposure of around 13%. Known to be the largest notebook PC maker, few years back, the company has done a strategic shift from its Original-Design-Manufacture (ODM) module to low-cost Electronic Manufacturing Services or EMS.
– Samsung Electronics is handling production of 32 bit AP (“S1”) using its 28nanometer process technology. Not much information has emerged about the S1 System-in-Package as Apple remains tightlipped about this latest technology. This much is known that the company has decided to rely on Samsung’s chip building talent for mass production of the brand-new chip.
– With the so-called advanced system-in-package (SIP) technology which is believed to be far superior over its current A-series chip designs, Apple aims to include a complete computing system on a single chip.
This System-in-Package module could be offered by the ASE Group which is known to be a pioneer in the field of SiP module manufacturing. Revenue exposure is to be expected in high single digit percentage.
– Amkor Technology and STATS might be handling the chip packaging part.
– LG Display, the largest producer of LCD panel worldwide, is reported to have been awarded the sole supplier right of P-OLED displays for the Apple Smartwatch. This would help in a 25% increase in the Korean major’s stock price.
Though LG is known to be the most trusted brand, but hard-core investors might raise question like whether it would be wise to invest in P-OLED technology, considering the fact P-OLEDs usually suffer from limited life span.
These are known to be less efficient too. The answer is that P-OLEDs do come with one plus point. These can be printed easily, which has made P-OLED popular among vendors which focus on large panels and high yield rates. News that have emerged about Apple Watch till now claims that the wearable might not have a life span greater than 4 years. Therefore, P-OLED technology shouldn’t pose a big problem.
As is evident from the above list, Apple has decided to try out new suppliers but without severing ties with its long time loyalists like Samsung. This is indeed a unique initiative as the company handpicks the best from different segments. Now it is to be seen whether these new bonding indeed offer fruitful results and lucrative returns for investors when Apply iWatch hits market by March end or April.