Apple Inc AAPL supplier Luxshare Precision Industry Co said it is under investigation for patent infringement, Reuters reported Monday (Shanghai Time).
What Happened: Luxshare said in a regulatory filing that it had been informed of two notices issued by the United States International Trade Commission related to a Section 337 investigation field against it by Amphenol Corporation APH, according to Reuters.
Amphenol — a Connecticut-based manufacturer of interconnect products — reportedly filed the complaint last month, alleging that certain electric components imported into the U.S. from Luxshare infringe on its patents for connector cables.
The concerns over the patent infringement sent Luxshare stock plummeting 9.5% in Shanghai on Monday.
Why It Matters: The China-based Luxshare makes connector cables for both the iPhone and Macbook products of Apple and also manufactures Airpods.
Last year, reports emerged that the Tim Cook-led tech giant had advised Luxshare to emerge as a more potent supply rival to Taiwan’s Hon Hai Precision Industry Co. Ltd HNHPF — better known as Foxconn.
Luxshare acquired two iPhone assembly plants from Taiwan’s Wistron Corporation in 2020, which unnerved some Foxconn executives, as per Reuters.
Price Action: Apple shares closed nearly 1.6% higher at $139.07 on Friday and gained 0.93% in the after-hours session.
Related Link: Apple Supplier Pegatron Prepares To Make iPhones In India With $150M Investment
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
