More mainland Chinese firms will take away market share from Taiwan iPhone suppliers: Investment firm - CNBC

More mainland Chinese electronics manufacturing companies are acceptable to instrumentality distant marketplace stock from Taiwanese counterparts specified arsenic Foxconn and Pegatron, an concern money manager said.

"Chinese companies are getting beauteous competitory for iPhone assemblers. China is doing rather good successful beauteous overmuch everything, but semiconductors," Kirk Yang, president and CEO of Kirkland Capital, told CNBC's "Squawk Box Asia" Friday.

"So that's wherefore eventually, you are going to spot much and much Chinese companies taking marketplace stock distant from Taiwanese physics companies," Yang added.

Apple's largest supplier Foxconn, besides known arsenic Hon Hai, is facing contention from China's Luxshare, which was reportedly awarded a declaration to nutrient premium iPhone models successful China.

That comes aft Foxconn posted grounds unaudited gross successful 2022 and reported that output astatine its iPhone works successful China had "basically returned to normal."

Luxshare has been producing a tiny quantity of the iPhone 14 Pro Max exemplary astatine its Kunshan plant, the Financial Times reported, arsenic Foxconn's Zhengzhou mill faced Covid restrictions and labour unrest past year.

Founded successful 2004 by a erstwhile Foxconn worker, Luxshare makes connector cables for the iPhone and MacBook, and besides manufactures AirPods.

Yang added that with China-Taiwan geopolitical tensions, Taiwanese companies connected the mainland person seen a batch of unit successful the past 5 years. "A batch of them are moving retired of China," Yang said.

That's wherefore Apple has to diversify, helium said, adding that the U.S.-China tech warfare is besides prompting companies to determination adjacent faster retired of mainland China.

Furthermore, Chinese companies specified arsenic Luxshare person the Hong Kong advantage, Yang said.

"They tin astir apt prosecute radical [more easy than non-Chinese companies] and get amended taxation incentives. After section companies larn however to marque products successful a akin quality, astatine a cheaper price, they volition beryllium taking marketplace share."

In mid-2021, Nikkei Asia reported that mainland China overtook Taiwan to go Apple's biggest root of suppliers.