According to a new report, Apple is going to work with AirPods and Apple Watch supplier Luxshare to manufacture the upcoming iPhone 13 lineup alongside regular assembler Foxconn. Luxshare is set to manufacture 3% of iPhone 13 models.
Apple to work with Luxshare to meet iPhone 13 demand
As reported by Nikkei Asia, Luxshare Precision Industry won the order away from both Foxconn and Pegatron.
Apple is tapping more suppliers in China for key roles in producing the latest iPhone, a sign that the country’s technological competitiveness is continuing to increase despite Washington’s attempts to rein in Beijing’s tech ambitions.
Chinese electronics maker Luxshare Precision Industry will build up to 3% of the upcoming iPhone 13 series, winning orders away from Taiwanese rivals Foxconn and Pegatron, Nikkei Asia has learned. Apple is slated to produce between 90 million and 95 million of the new iPhones through January.
The report goes on to say that Luxshare is set to commence production of iPhone 13 Pro this month. This is interesting because newcomers in Apple’s supply chain usually start out by producing older iPhone models like iPhone 11 or iPhone 12.
Luxshare will start building the iPhone 13 Pro — as the premium model is expected to be called — this month, according to sources, a major breakthrough for a company that has never produced iPhones on its own. Newcomers to the Apple supply chain normally start out making older iPhone models.
Neither Apple nor Luxshare has commented on the report, but the publication says one rival supplier said it will not let its guard down against Luxshare despite the small share of iPhone orders the company is going to start with. The rival went on to say that if it could not compete, Luxshare could end up becoming a major supplier for the Cupertino tech giant.
“Although Luxshare only makes a small percentage of iPhones this year, we can’t let our guard down,” an unnamed senior executive told Nikkei Asia. “If we don’t strengthen our competitiveness, sooner or later they will be the major source.”
Apple expanding its supply chain is good news for consumers because it decreases the chances of iPhone 13’s supply becoming irregular. This can lead to increased shipping times and delays in orders. The Cupertino tech giant diversifying its supply chain and relying more on Chinese manufactures could indicate that it expects its upcoming iPhone lineup to do well – even better than iPhone 12.