A new supply chain report published this morning states that Quanta Computer is expected to enjoy a strong second-half 2017 thanks to rising demand for notebooks, growing server sales and the release of the next-generation Apple Watch.

Apple is reportedly planning to launch its third-generation Apple Watch in 2017 and the wearable is likely to help Quanta's Apple Watch product line turn profitable. Although Compal Electronics reportedly has joined the supply chain of the Apple Watch, the market watchers believe Apple is likely to let Compal mainly handle older-generation models, the paper added.

Quanta had seen its notebook shipments growing every month in the second quarter and the trend is expected to continue throughout the second half of 2017.

The notebook ODM expects its notebook shipments to grow by a single-digit percentage sequentially in the third quarter and overall volume in the second half stands a chance of being higher than that in the first.

For the server business, some market watchers expect Quanta to continue achieving a double-digit shipment growth on year in 2017 thanks to rising orders for datacenter and rack server products. Intel's launch of the new Purley platform is also estimated to increase server demand.

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