Wistron is one of the three iPhone producers for Apple apart from Foxconn and Pegatron. All of them are Taiwanese contract manufacturers. But not anymore, as Luxshare, a Chinese company has officially announced to acquire two subsidiaries of Wistron in Eastern China for 3.3 billion yuan ($472 million).
Luxshare is known for producing accessories, cables, chargers, antennas, and other similar products. Above all, it is also the world’s largest Apple AirPods manufacturer. With the new acquisition, it will also become an iPhone assembler posing a threat to Pegatron’s business in China as per GF Securities analyst Jeff Pu.
According to a Wistron representative, the Kunshan site that is being sold to Luxshare makes smartphones, notebooks and connected devices. Some of these products are expected to be manufactured somewhere else. However, the spokesperson declined to comment on the company’s iPhone business.
Though Wistron is expected to not manufacture iPhones anymore in China, it will continue to assemble cheaper Apple smartphones in India.
The Luxshare-Wistron deal is said to be finalized by the end of 2020 pending regulatory approval. The acquisition is a win for both Luxshare and Apple as the former can now try its luck in manufacturing iPhones, whereas the latter gets a Chinese partner to expand its local sources.
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