Apple Brings China's Luxshare Precision into iPhone 13 Supply Chain to Meet Production Targets

Apple is tapping more Chinese suppliers as it seeks to meet ambitious targets for iPhone 13 production, according to a new report by Nikkei Asia.

iPhone 13 Dummy Thumbnail 2
Apple is set to produce between 90 million and 95 million iPhones through January, according to a previous Nikkei report, and China's Luxshare Precision Industry has won 3% of orders away from Taiwanese rivals Foxconn and Pegatron.

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. Two companies that Luxshare acquired last year, South Korean camera module maker Cowell and metal frame maker Casetek of Taiwan, will also supply key components and parts for this year's new iPhones, sources familiar with the matter said.

Despite Luxshare's small percentage of iPhone production this year, its involvement has reportedly rattled rival ‌iPhone‌ suppliers are said to be wary of the Chinese manufacturer's competitiveness and the possibility that it could steal away bigger chunks of orders in the future.

Luxshare's ability to break into ‌iPhone‌ production comes despite U.S. trade restrictions on China, whose increasing involvement in Apple's lucrative supply chain has reportedly come at the expense of rivals in the U.S., Taiwan, Japan, and South Korea.

For example, China-based Lens Technology has only supplied glass backs and cover glass for iPhones in the past, but this year it will also supply metal casings for the first time, according to Nikkei.

Meanwhile, China's biggest maker of smartphone camera lenses, Sunny Optical Technology, is also said to have entered the ‌iPhone‌ supply chain for the first time, supplying a small amount of rear camera lenses.

The news comes on the heels of multiple reports suggesting BOE Technology will soon begin supplying OLED panels for the ‌iPhone 13‌, pending approval from Apple, with several other Chinese suppliers and assemblers waiting in the wings.

Today's report highlights Apple's continuing mission to diversify its supply chain as much as possible, reducing risk and improve its bargaining power between major supply chain players like Foxconn and Samsung, which have traditionally dominated ‌iPhone‌ production.

The ‌iPhone 13‌ models are expected to be announced next month and will look similar to the 2020 ‌iPhone‌ lineup, with four devices in sizes that include 5.4-inches, 6.1-inches, and 6.7-inches, with two of the iPhones being higher-end "Pro" models and two positioned as lower-cost, more affordable devices.

For everything we know about what's new in the ‌iPhone 13‌ series, be sure to check out our dedicated roundup.

Related Roundup: iPhone 13
Tag: Nikkei
Related Forum: iPhone

Top Rated Comments

robotica Avatar
34 months ago
I wouldn’t want to be one of the first to get one of these from a first time producer.
Score: 7 Votes (Like | Disagree)
JPack Avatar
34 months ago
Luxshare helped Apple design and manufacture AirPods. They also supply mini LED. So of course Apple trusts Luxshare to build iPhones.

The other iPhone assembler is Wistron. After what happened in December with Indian workers rampaging through the factory, it’ll be a long time before Apple removes Wistron from their probation list.
Score: 4 Votes (Like | Disagree)
Shirasaki Avatar
34 months ago

Apple needs to start sourcing things within the states and no continue to rely so heavily on China I have no doubt this will be an excellent phone can't water to upgrade.
Yeah, cause US has all the raw materials, plants, people, technology and such to manufacture new iPhone in a scale of the million right now, yet somehow such amazing production capacity remains untouched by Apple. /s
Score: 4 Votes (Like | Disagree)
TheYayAreaLiving ?️ Avatar
34 months ago

I wouldn’t want to be one of the first to get one of these from a first time producer.
Apple is not going to be blindfolded and give them an opportunity to produce millions of units. There is alot of QA that takes place.
Score: 3 Votes (Like | Disagree)
tridley68 Avatar
34 months ago
Apple needs to start sourcing things within the states and not continue to rely so heavily on China I have no doubt this will be an excellent phone can't wait to upgrade.
Score: 3 Votes (Like | Disagree)
Shirasaki Avatar
34 months ago

I wouldn’t want to be one of the first to get one of these from a first time producer.
But now with basically scrambled serial number, there is no telling from the outside which iPhone is manufactured by which.

Guess we would see lots of lottery threads heading in September.
Score: 3 Votes (Like | Disagree)

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