Apple urges Chinese supplier to challenge Foxconn in bid to step up competition

Apple has advised one of its Chinese AirPods assemblers to make a major investment in an iPhone and MacBook metal casing provider, a move the company hopes will create a formidable alternative to another of its longtime suppliers, Taiwan’s Foxconn, Nikkei Asian Review reports citing “multiple sources.”

Apple urges Chinese supplier to challenge Foxconn in bid to step up competition
The logo of electronics contract manufacturer Foxconn Technology Group, formally known as Hon Hai Precision Industry, is displayed at its headquarters in Taipei. Photo: Agence France-Presse

Lauly Li and Cheng Ting-Fang for Nikkei Asian Review:

Luxshare-ICT, a fast-rising Chinese tech company known for its aggressive growth strategy, has been in talks with Catcher Technology, the world’s second-largest metal casing provider, for more than a year and has recently entered a deeper round of negotiations, said one of the people who is familiar with the situation.

The deal, if realized, would give Luxshare the ability to produce high-quality metal casing as well as access to smartphone assembly know-how, which would take it a step closer to becoming the Chinese version of Foxconn — a single company with operations that span nearly the entire electronics supply chain. Such a move could ultimately help Luxshare grab a share of iPhone production, which ships around 200 million units each year.

Foxconn, the world’s largest contract electronics manufacturer, has long been Apple’s biggest supplier, accounting for more than 50% of iPhone production since the device’s debut in 2007. Sources say the U.S. company is keen to reduce this heavy reliance.

MacDailyNews Take: This is all a bit nebulous as the report states, “Catcher said it does not have concrete plans at the moment to sell its Chinese assets or jointly invest with other companies.” And, any firm looking to replicate Foxconn has a very, very long way to go. That said, increasing competition among suppliers is (and always has been) a goal of Apple’s as competition brings down component and assembly costs like nothing else can.


    1. Not going to happen anytime soon. Almost every electronic device is made in China or elsewhere. Perhaps in the future when automation can work on small devices. And the boycotters must be boycotting all smart phones since they are all made elsewhere lol.
      China will be around forever. Hopefully the regime will change one day.

    2. Sounds discriminating. How much are you willing to pay more if an iPhone is made in US? Maybe it’s fine for you, but how about others? China is currently the manufacturing powerhouse, where’s US manufacturing standing now? Do yourself some homework will ya before blindly calling out boycott this and that.

      1. It IS discriminating. Discriminating against a country that suppresses its people, allows dogs to be boiled alive (yulin dogmeat festival) and is a hostile, predatory trade partner. It’s not always possible to avoid Chinese products but I think a lot of folks are going to start making the effort. I’m deeply imbedded in the apple ecosystem, but I would consider changing that, painful as it might be.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.