Controversies

Apple suspends AirPods production at Goertek; shares hit limit down

In November 2022, Goertek announced that it had received notice from a major overseas customer (Apple) to suspend production of one smart acoustic system product, expected to affect 2022 revenue by no more than RMB 3.3 billion. The news triggered rumors that it had been “kicked out of the Apple supply chain”; the stock opened limit-down, and nearly RMB 8 billion in market value evaporated in one day. Many hourly workers at its Weifang electroacoustics park quit or moved elsewhere. The company denied rumors of being “kicked out of the Apple chain” and of a huge fine; industry insiders said it might be related to yield issues. Goertek lowered its performance forecast; the incident highlighted its risk of relying on a single major customer.

Goertek sues Minxin for alleged utility-model patent infringement

Lawsuit filed

Goertek filed a lawsuit on July 29, 2019, alleging that Minxin and other companies infringed three of its utility-model patents. Goertek sought an end to the alleged activities and RMB 10 million in compensation; the case had not yet been heard as of the prospectus signing date.