Although some of Merry Electronics acoustic components have been verified by Apple, the Taiwan-based headset component maker needs to exert more effort in order to enter Apple's iPhone supply chain.

A new supply chain report this morning notes that while Merry Electronics along with other Taiwan-based acoustic equipment suppliers such as Jetvox Acoutstic and Eastern Technologies Holding have been producing earphones and other audio parts for Beats, they will face increasing competition pressure from rival companies in China for Apple's iPhone business.

Apple is currently buying earphones from Japan-based Foster Electric, microphones and speakers from China-based AAC Technologies and GoerTek, respectively.

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