More Chinese Firms Likely To Snatch iPhone Market Share From Taiwan Peers, Analyst Says

Author: Anusuya Lahiri | January 09, 2023 08:31am

• More mainland Chinese electronics manufacturing companies will likely win market share from Taiwanese peers like Hon Hai Precision Industry Co Ltd (OTC:HNHPF) Foxconn and Pegatron Corp (OTC: PGTRF), an investment fund manager said.
• Chinese companies got pretty competitive for Apple Inc (NASDAQ:AAPL) iPhone assemblers, Kirk Yang, Chair and CEO of Kirkland Capital, told CNBC’s Squawk Box Asia.
• China performed impressively in pretty much everything barring semiconductors.
• Apple’s largest supplier Foxconn faced competition from China’s Luxshare, which reportedly won a contract to produce premium iPhone models in China.
• Foxconn had said in 2022 that output at its iPhone plant in China had “basically returned to normal.”
• Yang added that with China-Taiwan geopolitical tensions, many Taiwanese companies on the mainland moved out of China, pressurizing Apple to diversify.
• Furthermore, Chinese companies like Luxshare can probably hire people and get better tax incentives. 
• After local companies learn to make products of similar quality at a lower price, they will win market share.
• In mid-2021, mainland China reportedly overtook Taiwan to become Apple’s most significant supplier.
• Price Action: AAPL shares traded higher by 0.44% at $130.20 premarket on the last check Monday.

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