Citing sources familiar with the matter, on Wednesday, the Financial Times reported that Apple Inc is all set to sign up Chinese contract manufacturer Luxshare Precision Industry Co Ltd to produce premium iPhone models.
The report further added that so far Luxshare has been producing small numbers of the iPhone 14 Pro Max at its Kunshan plant, to compensate for lost production at Foxconn’s Zhengzhou factory last year.
Founded in 2004, Luxshare became an Apple supplier in 2011 and has rapidly moved up the hardware giant’s value chain, from making connector cables for the iPhone and Macbook in its early stages to manufacturing Airpods soon after.
The iPhone maker and Luxshare did not immediately respond to Reuters requests for comment.
Image Credits: Forbes Tech
Several analysts expect Apple to enlarge its supplier base amid production disruptions in China due to employee unrest at a factory operated by Foxconn and COVID-19 induced lockdowns in the Zhengzhou province of China.
So far, the iPhone manufacturer Foxconn, formally known as Hon Hai Precision Industry, and Pegatron Corp have had a dominant role in Apple’s supply chain.
In November, Apple informed of lower shipments of its premium iPhone 14 models following noteworthy production cuts.
Wall Street expects Apple iPhone shipments to slip in the holiday quarter after Foxconn’s plant in China’s Zhengzhou city was heavily affected in 2022 after a severe surge in COVID-19 cases and curbs were implemented to control the virus prompted thousands of workers to leave the factory.
Source: The Strait Times
Sources told Reuters on Tuesday that Foxconn plant is almost back to full production, with its December shipments reaching about 90% of initial plans.
On Saturday, Industry research firm TrendForce said that Apple decided to employ Luxshare as one of the assemblers for the upcoming iPhone 15 Pro Max.
TrendForce added that Luxshare’s only iPhone assembly plant is located in China and it doesn’t plan on setting up an iPhone production line at its Vietnam plant where it assembles Apple accessories.
The iphone maker’s ties with China have become stronger in recent years as Chinese contract manufacturers have won orders at the expense of Taiwanese partners. Goertek and Wingtech, assemblers of AirPods and MacBooks, have benefited, while Foxconn has attempted to reduce its reliance on China by establishing plants in India, Vietnam and the US.
