Wistron to sell iPhone assembly units to China’s Luxshare for $472 mil.
TAIPEI, NNA—Taiwan’s Wistron Corp. plans to sell its Apple iPhone assembly units in China to its mainland rival Luxshare Precision Industry Co. for 3.3 billion yuan ($472 million) as it shifts its focus to India.
Wistron’s subsidiary Win Smart Co. will sell Wistron InfoComm Manufacturing (Kunshan) Co., Wistron Investment (Jiangsu) Co., and their related business, including smart devices, notebooks, and Internet of Things (IoT) products, to Luxshare, a cable assembly and connectors manufacturer.
The deal is likely to be completed by the end of this year pending regulatory approvals, Wistron said in a statement last Friday.
A Wistron spokeswoman told NNA on Monday the move does not signal the company’s withdrawal from iPhone assembly business, and that it would continue making handsets in India, Malaysia, and China.
Wistron makes handsets, including those for iPhones, as well as IoT hardware and high-tech medical devices at its Indian subsidiary, Wistron Infocomm Manufacturing (India) Pvt. Ltd. According to the company, Wistron will increase its investment in the unit by $165.3 million from an initial $36 million, as it seeks to expand in India’s domestic market and potentially export to others.
Wistron InfoComm Manufacturing (Kunshan) Co., capitalized at NT$3.99 billion ($135 million), posted a net profit of NT$297 million in 2019, more than half of the group’s annual net profit of NT$6.8 billion.
Wistron will be more aggressive to invest and develop future technologies while targeting new business areas such as 5G, artificial intelligence, automotive, and health care to further enhance its product portfolio and profitability, the company said in a statement.
Wistron has also pledged to make more investments in its headquarters in Taiwan, and continue to develop its manufacturing facilities in Mexico, India, Malaysia, Vietnam, Czech Republic, and China.
It logged NT$394.9 billion in sales for the first six months of this year, a 4.1 percent decline from a year earlier, according to its latest financial statement.