in

Apple backs Chinese supplier’s move to challenge Foxconn · TechNode


Apple has advised one of its Airpod factories in China to make a major investment in a key supplier as the company moves to create an alternative to its longtime Iphone assembler, Taiwan’s Foxconn, according to a Nikkei Asian Review report.

Why it matters: The deal would bring Luxshare-ICT, a lesser-known Chinese assembler of Apple’s Airpods, closer to producing Iphones, grabbing share from Foxconn.

  • Hon Hai Precision Industry, known as Foxconn, is the world’s largest electronics contract manufacturer and a major Iphone assembler. 

Details: Luxshare has been in talks with Taiwan’s Catcher Technology, the world’s second-largest metal casing provider, for more than a year and has recently entered a deeper round of negotiations, according to the Nikkei report, citing a person familiar with the talks.

  • The deal in question covers some of Catcher’s facilities in China, its workforce, and its business opportunities with Apple, the report said.
  • The report cited anonymous sources as saying that Apple is keen to reduce its heavy reliance on Foxconn, which has accounted for more than 50% of iPhone production since 2007.

Context: Luxshare will help Apple produce 3 million to 4 million Airpod units in Vietnam in the second quarter as the California-based tech giant further diversifies its production out of China, according to another Nikkei report published last week.

  • Apple had previously asked suppliers to assess cost implications for shifting 15% to 30% of hardware production out of China at the peak of the trade conflict between the US and China last year.
  • Foxconn recently moved some of its Iphone production lines out of China and has started to produce some Iphone XR units in India.

Read more: Apple partner Foxconn struggles to reopen plants

Wei Sheng is a Beijing-based reporter covering hardware, smartphone, and telecommunications, along with regulations and policies related to the China tech scene. Before joining TechNode, he wrote about…
More by Wei Sheng



Source link

What do you think?

Written by Aakash Malu

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

0

Comments

0 comments

Credit management startup AsiaCollect bags $6m, rebrands as Flow

Delhi HC To Hear Plea On Google Pay Allegedly Flouting UPI Interoperability Rules