Apple supports Luxshare AirPods assembler to move to iPhone 12 production early

Luxshare, Apple’s main AirPods assembler, reportedly tried to launch iPhone manufacturing earlier than expected, an Apple-backed move aimed at challenging Taiwanese rival Foxconn’s dominance in the supply chain “iPhones”.

Earlier this year, analyst Ming-Chi Kuo raised the possibility of Luxshare embarking on the assembly of ‌iPhone‌, starting with small-scale production of older models of iPhones and Apple Watch. however, Nikkei today quotes several sources saying that Luxshare is already studying the production of the new iPhone 12 mini in a Chinese factory that it is buying in Wistron.

The factory is responsible for about 20% of total orders for the iPhone 12‌ mini, said two people with direct knowledge of the matter.

“Luxshare is working with Wistron to create the latest ‌iPhone 12‌ mini in Kunshan. [But] its pace to achieve satisfactory production performance is slow. Luxshare still has a lot of room to learn, ”said a high profile source familiar with the situation.

This move is considered unusual as the purchase of the factory is not final and Apple does not normally allow outside employees to visit supplier manufacturing sites, especially during the height of the production season of the company. ‘iPhone.

Luxshare bought Wistron’s iPhone assembly plant in Kunshan, China for $ 499 million in July to strengthen its manufacturing ties with Apple. Wistron has been an iPhone‌ maker itself since 2015, with factories in China and India, and Apple has reportedly asked Wistron to share some of its iPhone‌ production expertise with Luxshare as part of the deal. .

Kuo previously said that he believed Luxshare Precision would become a key supplier of composantsiPhone case components by the second half of 2021. The company would have a unique vertical integration advantage as it also supplies many ‌‌iPhone‌‌ parts and accessories to Apple.

In related information reported earlier this week, Apple suspended its partnership with Chinese company Pegatron after discovering that the main iPhone supplier was committing labor law violations under a student worker program. While Pegatron’s current l’activitéiPhone‌‌ activity should not be affected, Bloomberg has indicated that it could lose iPhone 12 orders to Luxshare next year.