iPhone maker Pegatron to take over casing unit to fight Luxshare | Tech News

iPhone maker Pegatron to take over casing unit to fight Luxshare

Taiwan’s Pegatron, which along with larger competitor Hon Hai Precision Industry Co makes most of the world’s iPhones, said in a statement it will acquire the rest of the device casings maker it doesn’t own, then take private a unit valued at about $1 billion.

By:BLOOMBERG
| Updated on: Aug 20 2022, 22:33 IST
While Pegatron’s market position is seen as threatened by Luxshare, the Taiwanese company also owns a 0.57% stake in the Chinese supplier, opening up the possibility for a future alliance.
While Pegatron’s market position is seen as threatened by Luxshare, the Taiwanese company also owns a 0.57% stake in the Chinese supplier, opening up the possibility for a future alliance. (REUTERS)

iPhone assembler Pegatron Corp is taking over Casetek Holdings Ltd, strengthening its position against rising Chinese rival Luxshare Precision Industry Co.

Taiwan's Pegatron, which along with larger competitor Hon Hai Precision Industry Co makes most of the world's iPhones, said in a statement it will acquire the rest of the device casings maker it doesn't own, then take private a unit valued at about $1 billion.

You may be interested in

MobilesTablets Laptops
7% OFF
Apple iPhone 15 Pro Max
  • Black Titanium
  • 8 GB RAM
  • 256 GB Storage
5% OFF
Apple iPhone 13 Pro Max
  • Gold
  • 6 GB RAM
  • 128 GB Storage
Apple iPhone 15 512GB
  • Black
  • 6 GB RAM
  • 512 GB Storage
12% OFF
Apple iPhone 13
  • Blue
  • 4 GB RAM
  • 128 GB Storage

Pegatron and Hon Hai are preparing for intensified competition from Luxshare and potentially other mainland rivals, as Beijing fosters a domestic supply chain in response to growing US sanctions. The Shenzhen-based Luxshare is poised to become the first locally-based iPhone assembler after it sealed a deal in July to acquire Wistron Corp's Apple production plant.

Also read
Looking for a smartphone? To check mobile finder click here.

“Pegatron is trying to bolster its component business to defend itself against the rise of Luxshare,” said GF Securities analyst Jeff Pu. “It may streamline some overlapping business with Casetek.”

Foxconn is adopting a similar strategy in seeking to boost its component business to fend off competitors, Chairman Young Liu said during an earnings conference on Wednesday. A key supplier to Apple Inc. and a dozen other tech giants, he said Foxconn plans to split its supply chain to separately serve the Chinese market and the US, declaring that China's time as a factory to the world is finished.

ALSO READ: WeChat ban could hurt iPhones sales: Report

The Chinese government is offering benefits to entice domestic companies to build a homegrown supply chain and non-Chinese firms may be adversely affected in the near future, Hon Hai's Hong Kong-listed subsidiary FIH Mobile warned in its earnings release this month.

To reduce its Chinese exposure in the midst of a trade war, Pegatron has set up manufacturing facilities in Indonesia's Batam along with a subsidiary in India.

While Pegatron's market position is seen as threatened by Luxshare, the Taiwanese company also owns a 0.57% stake in the Chinese supplier, opening up the possibility for a future alliance.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 13 Aug, 18:43 IST
Tags:
NEXT ARTICLE BEGINS