In addition to Foxconn and Pegatron, Wistron is among the three iPhone manufacturers for Apple. They are all Taiwanese contract makers. Not only that, but a Chinese company called Luxair has officially announced that it will acquire 3.3 billion yuan ($ 472 million) from two of Western’s subsidiaries in eastern China.
Luxair is known for producing accessories, cables, chargers, antennas, and other similar products. After all, it is also the world’s largest maker of Apple AirPods. With the new acquisition, it will become an iPhone assembler, threatening Pegatron’s business in China, according to GF Securities analyst Jeff Pu.
A representative from Western said the shrink site, which is being sold in Lexus, produces smartphones, notebooks, and connected devices. Some of these products are expected to be produced elsewhere. However, a spokesman declined to comment on the company’s iPhone business.
While Western is no longer expected to make iPhones in China, they will be assembling cheaper Apple smartphones in India.
The Luxair-Western deal is expected to be finalized by 2020 with a delay in regulatory approval. The acquisition is a win for both Luxair and Apple, as the former can now try its luck in making the iPhone, where China has become a partner in expanding modern local sources.