In a sluggish year for Asian exporters, Taiwan's economy and stock market are in a "sweet spot" thanks to the country's strong position in the supply chain for tech products, analysts say.
Media reports in recent weeks suggest Taiwan-based suppliers are gearing up for the production of new Apple products.
For instance Reuters reported last week that Taiwan's Quanta Computer will start mass production of Apple's first smartwatch next month, while Taiwanese contract manufacturer Pegatron Corp is expected to expand its China workforce by 30 percent to meet high demand for the iPhone 6.
Read MoreApple iWatch to begin production in July: Source
"At the moment I think the sweet spot really is Taiwan," said Michael Kelly, the global head of asset allocation at PineBridge Investments in New York, talking about the outlook for Asian exporters on CNBC Asia's "The Rundown" Monday.
"Taiwan is tech heavy, all of these product cycles coming out of Apple – thanks to the iPhone 6, the iPad – will be a very good thing, especially for Taiwan," he added.
Taiwan's benchmark stocks index is one of Asia's best performing stock markets so far this year. It has rallied about 7 percent, outpacing a 4.3 percent gain in MSCI's broadest index of Asia-Pacific shares outside Japan.
Its gains also top a 6.5 percent rally in South Korea's main stock index – the market with which Taiwan is most often compared.
Both South Korea and Taiwan remain heavily dependent on exports, which have suffered from weak demand from Europe and a slowdown in China. Taiwan's exports rose 1.4 percent in May on-year, well below analyst expectations for a 3.65 percent rise, while South Korea's exports fell 0.9 percent in May on year.
Still, analysts say the outlook is what matters and that is improving helped by a recovery in the U.S. economy -- the world's biggest.