Chinese Electronics Company Luxshare Precision Joins Supply Chain for Apple’s iPhone 13

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(Source: ConceptsiPhone)

Luxshare Precision Industry Co., Ltd, a Chinese electronics manufacturer, has bagged 3% of iPhone 13 orders from Foxconn and Pegatron, according to Nikkei Asia. The firm is about to win 2.7 million to 2.85 million iPhone orders, based on the reported figure.

People familiar with the matter said Luxshare Precision would start manufacturing the high-end iPhone 13 Pro this month, marking a major breakthrough for the company that had never independently produced any iPhone. Previously, companies new to Apple’s supply chain often started with older iPhone models.

Last year, Luxshare Precision acquired Cowell, a camera module manufacturer based in South Korea, and Casetek, a metal casing manufacturer from Taiwan. These two firms will also supply components for the iPhone 13.

According to a report by Nikkei Asia, Apple is seeking more suppliers to meet the production of the upcoming iPhone 13, and the company plans to produce 90-95 million iPhone 13s of various models before January.

In addition, Lens Technology, also from China and which used to only provide glass backplanes and cover glass for the iPhone, will this year begin to also provide metal casing for iPhone 13. Sunny Optical, the largest camera manufacturer for smartphones in China, joined the iPhone 13 supply chain for the first time to supply rear camera lenses. Finally, BOE will provide OLED panels for the iPhone 13.

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Eric Tseng, an analyst at Isaiah Research, said, “in the next few years, as geopolitical uncertainty continues to rise, Apple may need to diversify its procurement to better control costs, which will provide a good opportunity for Chinese suppliers. Chinese manufacturers will then increase their share in Apple’s supply chain, bringing greater pressure to existing Apple suppliers.”

Apple oversees the most complicated supply chain of consumer electronics in the world, producing about 200 million iPhones, 20 million MacBooks and tens of millions of AirPods every year. Because of Apple’s high manufacturing standards, every producer selected by Apple tends to be regarded as the best in its field.

Zhidx reported that it would become the norm for Apple’s Chinese mainland suppliers to break through their business scope and proportion, and gradually encroach on the markets of suppliers from Japan and South Korea.