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Apple to Partner with Luxshare for Premium iPhone Production in China

According to sources cited by the Financial Times, Apple is reportedly set to join forces with Chinese contract manufacturer Luxshare Precision Industry to produce premium iPhone models.

Apple Logo
Apple Logo

Luxshare, founded in 2004 and an Apple supplier in 2011, has previously produced connector cables and Airpods for the tech giant. It has also been manufacturing small numbers of the iPhone 14 Pro Max at its Kunshan plant to compensate for lost production at Foxconn's Zhengzhou factory.

Luxshare's History as an Apple Supplier

Luxshare was founded in 2004 and began working with Apple as a supplier in 2011. Since then, the Chinese company has moved up the hardware giant's value chain, manufacturing a range of products, including connector cables, Airpods, and the iPhone. Luxshare's only iPhone assembly plant is located in China, and the company currently has yet to set up a production line for the phone at its Vietnam plant, where it assembles Apple accessories.

Apple Diversifies Supplier Base amid Production Disruptions

Apple is expected to diversify its supplier base in the face of production disruptions caused by employee unrest at Foxconn's factory and COVID-19 lockdowns in China. Foxconn and Pegatron Corp have traditionally held a dominant position in Apple's supply chain. In November, the tech giant warned of lower shipments of its premium iPhone 14 models due to significant production cuts. Wall Street analysts predict Apple iPhone shipments will decline following production issues at Foxconn's plant in Zhengzhou in the holiday quarter.

Luxshare to Assemble Upcoming iPhone 15 Pro Max

Industry research firm TrendForce has reported that Apple has selected Luxshare as one of the upcoming iPhone 15 Pro Max assemblers. Luxshare's only iPhone assembly plant is located in China. The company has yet to set up a production line for the phone at its Vietnam plant, where it assembles Apple accessories.

Foxconn Plant in Zhengzhou Nearly at Full Production

Foxconn's plant in Zhengzhou, China, heavily affected by a COVID-19 outbreak and control measures last year, is reportedly almost back to full production. In December, shipments from the plant reached around 90% of initial plans, according to sources cited by Reuters. The news comes as analysts predict a decline in Apple iPhone shipments in the holiday quarter following production issues at the Foxconn plant.

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