- More mainland Chinese electronics manufacturing companies will likely win market share from Taiwanese peers like Hon Hai Precision Industry Co Ltd HNHPF Foxconn and Pegatron Corp PGTRF, an investment fund manager said.
- Chinese companies got pretty competitive for Apple Inc 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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