Apple awards iPhone headphones contract to Hon Hai, Cheng Uei

Apple has shifted a major manufacturing contract from Japan-based FOSTER to two Taiwanese companies, Taiwan Economic Times reported earlier this week. Taiwan-based manufacturers Hon Hai and Cheng Uei have been tasked with building the OEM headphones that ship with Apple’s iPhone — a contract likely worth over $300 million. FOSTER loses the business after a stretch as the exclusive manufacturer of Apple’s iPhone headphones, and the job will now be split between two Taiwanese companies. Cheng Uei will build the cords, speakers and control switches while Hon Hai will insert the wires and assemble the earbuds. Cheng Uei also manufacturers the chargers that ship with Apple’s iPad, and is in the process of expanding its facilities to increase output.

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