After assembling AirPods and Apple Watches for years, the Cupertino tech giant deepened its relationship with Chinese manufacturer Luxshare Precision Industry by giving it a three percent share of iPhone 13 manufacturing. And that has boosted the manufacturer’s revenue, significantly.
Earlier this month, Luxshare was reportedly awarded a manufacturing order for iPhone 13 series. Nikkie Asia reports that Luxshare, also known as Little Foxconn, recorded more than 30% Y-o-Y revenue growth in the first half of 2021, amounting to $7.42 billion.
iPhone 13 orders boost Luxshare revenue by 30%
As per the report, the Chinese manufacturer will be responsible for three percent of iPhone 13 production, including iPhone 13 Pro model. The iPhone 13 order alone has helped Luxshare to achieve record revenue and plan its five-year corporate growth plan.
The results were achieved despite geopolitical uncertainties, a global chip shortage, the rise of labor and raw materials costs, and on-and-off disruptions from COVID-19.
“Some of our businesses were postponed due to multiple external factors,” Luxshare said in a stock exchange filing. “But looking ahead to the second half of this year, we are determined to continue to carry out our five-year corporate growth plan though the external uncertainties are expected to stay.”
Apple’s decision to include Luxshare in iPhone 13 manufacturing refers to improvement in its production standards and quality.
Its elevation to the status of iPhone assembler demonstrates its improving manufacturing capability, given Apple’s strict quality standards and requirements, and analysts say it now faces a test of whether it can provide stable quality when the model begins mass production.
To meet the high demand and reduce its reliance on few manufacturers, Apple has been expanding its suppliers’ list. Nikkie Asia reports that the company “now has more suppliers from China and Hong Kong than from Taiwan.” And many Chinese suppliers are reaping the reward of business with Apple.
- Lens Technology, a longtime iPhone cover glass supplier and now a provider of metal casing, reported nearly 40% revenue growth for the first half.
- Apple’s major iPhone battery module suppliers, Sunwoda Electronic and Shenzhen Desay Battery Technology, both Chinese, posted strong results recently. Sunwoda’s second-quarter profit was up 350% to 488.7 million yuan, on revenue growth of 24% to 7.82 billion yuan.
- Chinese chip packaging and testing supplier Jiangsu Changjiang Electronics Technology — also a key Apple supplier — saw its first-half net profit surge 261% to 1.3 billion yuan.