Apple selects two new iPhone headphone manufacturers

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According to a report by Cens.com, Japan based FOSTER is out as the exclusive maker of Apple’s iPhone headphones with Cupertino offering the contract to two Tawainese companies, Hon Hai and Cheng Uei.

FOSTER has been the exclusive manufacturer of the headphones for quite some time but that is going to end once 2011 rolls around. Specifically, Hon Hai is going to be responsible for constructing the wires and assembling the devices while Cheng Uei will be making the producing cords, loudspeakers and control switch modules.

The contract is said to be worth $5-10 billion in Taiwanese currency which translates into around $300 million in American dollars. Business for both companies is said to start booming after this acquisition, especially for Cheng Uei, who also produce the OEM iPad chargers as well as the flexible substrates used in the iPhone volume control switch.

And how much of an increase, you might ask?

Oh, just a 50% surge in business for Cheng Uei to Apple. That makes sense considering sales estimates indicate Apple has sold 48 to 50 million iPhones already this year which may increase to 100 million in 2011.

That’s 100 million new sets of headphones that need to be made which explains that 50% increase.

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