A new supply chain report this morning notes that Quanta vice chairman CC Leung wanted to clarify past rumors that the Apple Watch had a poor yield rate, and that Apple was considering outsourcing related orders to other manufacturers and has even asked employees of Foxconn Electronics (Hon Hai Precision Industry) to assist Quanta Computer to assemble the device. Leung stated that Apple's wearable device is no longer a challenge to Quanta in both technology and quality.

Due to a labor shortage during the Lunar New Year holidays, Quanta was forced to borrow manpower from other manufacturers and was only able to deliver limited shipments in the first quarter. However, Quanta now has sufficient capacity to manufacture all the orders and should see a giant contribution from its wearable device business in the second quarter.

Leung noted that the wearable device is unlike the smartwatches it produced before and has a lot of functions in it and its client is satisfied with the product.

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