- Apple has frozen new business deals with the primary iPhone manufacture in China, Pegatron, due to labor accuse allegation.
The Luxshare Precision Industry could be a potential beneficiary of these consequences, according to local Chinese media, The Paper.
Pegatron shares fell more than 2% on the Taiwan Stock Exchange before the close, while Luxshare Precision Industry shares rose nearly 1% on the Shanghai Stock Exchange late Monday.
In its second-largest market by revenue, Apple's ad was frantically discussed on social media. With more than 6 billion views, the "iPhone12" brand ranks first. 1 Post on Weibo is similar to Twitter in China.
Today, Reuter stated that "Apple's long-awaited launch comes as Chinese Android brands such as Huawei and Xiaomi Corp release advanced 5G devices that support improved Chinese telecommunications networks, with the US giant seen by some analysts as being late to the party."
When asked if they will buy the new iPhone, which will give Apple users access to 5G in a market where these networks are already proliferating, respondents to a survey by Caijing magazine were divided roughly evenly - about 10,000. They voted against it, 9269 said yes and a little more. 5,400 said they were still thinking about it. “This is really cool considering that Apple's iPhones are No. 5. In China, this is a strong reaction to a company in fifth place in the context of the population.
Apple latest news- It has frozen new business deals with China's leading device maker Pegatron
"Pegatron's current iPhone business should not be affected. However, Pegatron is likely to lose some new Apple phone orders next year to Luxshare, which is set to become a new iPhone assembler in 2021," said Jeff Pu, an analyst at GF Securities, Bloomberg these new orders include four new iPhone 5G phones from Apple.
Also read: Apple to roll-out anti-tracking feature next year to tighten app privacy
Who receives new iPhone orders from Apple?
In India, Wistron and Foxconn run Apple's manufacturing backbone. Although they may welcome the move to fill the void left by Pegatron, Apple will likely approach a brand new player. Luxshare Precision Industry is said to be on track to become the first mainland company to assemble an iPhone, according to local Chinese media outlet The Paper. On the other hand, Pegatron is located in Taiwan.
iPhone 12 is available to order in China from October 16, and will cost 5,499 yuan ($ 815.37) for the "mini" version, and will rise to 11,899 yuan for the top of the range.
"5G in China now is not a distinct advantage, it is a must-have feature. The launch of 5G will trigger a new wave of phone alternatives" for Apple's company in China before the end of the year and in the quarter, said Nicole Bing, who tracks the Chinese smartphone sector in Canalys. The first of 2021. "
Apple unit shipments in China increased 35% year-over-year in China in the second quarter of 2020, according to Canalys. This made it the only flagship brand, other than Huawei, to have seen positive growth, a feat it achieved even without introducing the 5G device. “It is only getting better in the future.
At this time, it is not known whether such a development will boost Apple's ranking in China.
Also read: iPhone 12 vs iPhone 11 Comparison, Price