Apple has reportedly advised its Chinese AirPods assembler Luxshare to make a major investment in Catcher Technology, a Taiwanese firm that makes the metal casing for iPhone and MacBooks.

According to sources who spoke to Nikkei Asian Review, Apple hopes the move will create a "formidable" alternative to its longtime supplier, Taiwan's Foxconn.

LuxshareLogo 1

Luxshare-ICT, a fast-rising Chinese tech company known for its aggressive growth strategy, has been in talks with Catcher Technology, the world's second-largest metal casing provider, for more than a year and has recently entered a deeper round of negotiations, said one of the people who is familiar with the situation.

The deal, if realized, would give Luxshare the ability to produce high-quality metal casing as well as access to smartphone assembly know-how, which would take it a step closer to becoming the Chinese version of Foxconn -- a single company with operations that span nearly the entire electronics supply chain. Such a move could ultimately help Luxshare grab a share of iPhone production, which ships around 200 million units each year.

Apple is said to be keen to reduce its reliance on Foxconn, which has accounted for more than 50 percent of ‌iPhone‌ production since Apple launched the device in 2007. Diversifying the Cupertino giant's assembly supply chain would also make it less vulnerable to local economic instabilities and allow it to negotiate better prices with manufacturers.

Apple is continually seeking to broaden its supply options around the globe, and has even gone so far as to invest its own money in companies to keep them afloat. One recent example is its multi-million bailout provision for LCD panel maker Japan Display, which Apple wants to see become a future OLED panel supplier and thereby reduce its reliance on Samsung.

Whether Catcher goes through with any deal remains to be seen. While such a situation would be a win-win for Apple, the benefits to suppliers are less clear-cut as they are likely to shoulder more of the risk of such an investment if consumer demand sours amid the global economic downturn linked to the ongoing health crisis.

Top Rated Comments

uther Avatar
38 months ago
Yes please! Let’s keep making Chinese manufacturing stronker. /s

Apple’s hypocrisy on human rights and democracy is getting sickening.
Score: 24 Votes (Like | Disagree)
whlee75 Avatar
38 months ago
Translation:folks please fight it out so I can reap more benefits
Score: 20 Votes (Like | Disagree)
ArtOfWarfare Avatar
38 months ago
I thought [S]Foxconn was also a Chinese company, and[/S] that Apple wanted to reduce their dependence on Chinese companies?

Edit: Responses have corrected me - Foxconn is Taiwanese, not Chinese. I guess that makes things even worse, as far as diversifying to be less reliant on China.
Score: 13 Votes (Like | Disagree)
swingerofbirch Avatar
38 months ago
Just reminds me of when I did customer support for Apple.

I think they had about 12 companies contracted out to do it (plus their own internal customer support—those were the employees treated nicely).

They had the companies fight over dog scraps. The company could lose the contract at a moment's notice, which we were constantly reminded of and did in fact happen at one of the companies I worked for (I did this as a gig at two different contractors). And actually I didn't even work for the contractor. I "provided work," meaning I worked for myself (same situation with Uber, etc).

Maybe Apple should use their money to build something, like have actual Apple-employed employees build actual physical objects (like manufacturing equipment and products), instead of lobbying Congress into letting them repatriate money they made overseas without paying full taxes on it or instead of all their share buybacks.
Score: 12 Votes (Like | Disagree)
Fender2112 Avatar
38 months ago

More competition = higher profits for Apple
Fixed that for you.
Score: 10 Votes (Like | Disagree)
pianoman88 Avatar
38 months ago

Just reminds me of when I did customer support for Apple.

I think they had about 12 companies contracted out to do it (plus their own internal customer support—those were the employees treated nicely).

They had the companies fight over dog scraps. The company could lose the contract at a moment's notice, which we were constantly reminded of and did in fact happen at one of the companies I worked for (I did this as a gig at two different contractors). And actually I didn't even work for the contractor. I "provided work," meaning I worked for myself (same situation with Uber, etc).

Maybe Apple should use their money to build something, like have actual Apple-employed employees build actual physical objects (like manufacturing equipment and products), instead of lobbying Congress into letting them repatriate money they made overseas without paying full taxes on it or instead of all their share buybacks.
Unbelievable. The last thing Apple should do is increase its dependence on China.
Score: 8 Votes (Like | Disagree)

Popular Stories

iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
iOS 16

Apple Releases iOS 16.4 With New Emoji, Safari Web Push Notifications, Beta Changes, Voice Isolation for Calls and More

Monday March 27, 2023 10:03 am PDT by
Apple today released iOS 16.4, the fourth major update to the iOS 16 operating system that initially came out last September. iOS 16.4 comes two months after the launch of iOS 16.3, an update that added Security Keys for Apple ID. iOS 16‌.4 and iPadOS 16.4 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. It can take a few minutes...
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
top stories 25mar2023

Top Stories: iPhone 15 Pro Design Leak, iOS 16.4 Coming Soon, and More

Saturday March 25, 2023 6:00 am PDT by
We're still almost six months away from the official unveiling of the iPhone 15 lineup, but it seems like every day we're learning more about what to expect from the next-generation models. Notably, this week gave us our clearest look yet at what appear to be some changes for the volume and mute control hardware. iOS 16.4 and associated releases are also right around the corner with some new ...
apple tv 4k red image

Apple Releases tvOS 16.4 for Apple TV 4K and Apple TV HD

Monday March 27, 2023 10:00 am PDT by
Apple today released tvOS 16.4, the fourth major point update to the tvOS 16 operating system that came out last September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.4 comes two months following the release of tvOS 16.3. The tvOS 16.4 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software Update....