Hon Hai, the world’s largest contract electronics manufacturer, may generate up to 50 per cent of its total revenue from the iPhone this year, according to a Citi Research estimate.

The revenue exposure of rival Taiwanese contract manufacturer Pegatron Corp is expected to be larger at up to 55 per cent this year, while Wistron Corp’s is forecast at up to 25 per cent.

“Apple continues to differentiate the higher-end models and further segment their higher-end models,” Citi senior analyst Jim Suva said last week.

For example, the iPhone 6 super cycle offered larger screens for its 6 Plus model. The iPhone 7 Plus released last September delivered so-called dual camera functionality.

“We would expect to see continued differentiation in iPhones with higher average selling price for OLED phones with dual cameras,” Suva said.

Counterpoint Technology research director Neil Shah has said the introduction of cutting-edge features augurs well for Apple’s much-anticipated “super cycle” for the iPhone 8, which will see a large base of iPhone 5s, 6 and 6s Plus users upgrade to the new models.

Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest chip foundry, is expected to start production of Apple’s A11 chip in July, according to Citi analyst Roland Shu.

Also ramping up preparations are Hong Kong-listed companies AAC Technologies, for miniature acoustic systems, and ASM Pacific Technology, for the active alignment bonding system used on camera modules.

AAC's estimated revenue exposure to the iPhone this year is up to 40 per cent, while TSMC is up to 25 per cent, according to Citi.

Other prominent Asian suppliers for the iPhone 8 cycle include Taiwan's flexible printed circuit board maker Flexium Interconnect, camera lens module maker Largan Precision and casing specialist Catcher Technology; Japanese LCD manufacturers Sharp and JDI; and Chinese acoustic components provider GoerTek, touch panel cover glass maker Lens Technology and wireless charging specialist Luxshare Precision Industry.

Samsung Display, a unit of Samsung Electronics, was widely reported last month to have agreed to a two-year deal to supply Apple with up to 92 million curved OLED panels for the iPhone 8.  

"We believe that Hon Hai and Sharp will [also] spearhead investments in the OLED space," Hariharan said.

Hon Hai completed its US$3.8 billion takeover of Osaka-based Sharp in August last year.

Read more at http://www.scmp.com/tech/article/2093328/foxconn-other-asian-suppliers-ramp-preparations-iphone-8