Foxconn Electronics (Hon Hai Precision Industry), in view of decreasing demand for iPads, has adjusted the organization of the iPad business group under its subsidiary in Shenzhen, southern China, in preparation for competing for OEM/ODM orders for wearable devices including Apple Watch, according to Taiwan-based supply chain makers. However, Foxconn has denied the reports.

Demand for tablets has been weakening over the past few quarters.

Seeing the same trend, Korea-based Samsung Electronics has started simplifying its tablet product line and given up the previous strategy of flooding the market with multiple different devices to push for shipments.

Asustek's tablet business has also been badly affected by weakening demand in Europe and North America. The company's T300 Chi 2-in-1 device had much worse sales performance than expected.

At the end of June, the Apple Watch will become available in Italy, Mexico, Singapore, South Korea, Spain, Switzerland and Taiwan.