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
Buyer's Guide: iPhone 13 (Buy Now)
Related Forum: iPhone

Top Rated Comments

robotica Avatar
11 weeks 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
11 weeks 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
11 weeks 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
11 weeks 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
11 weeks 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
11 weeks 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)

Related Stories

iPhone 13 Dummy Thumbnail 2

Apple Supplier Luxshare Reports Record Growth After Securing iPhone 13 Orders

Wednesday August 25, 2021 2:09 am PDT by
Apple supplier Luxshare has reported record revenue and profit in the first half of 2021, thanks largely to the Chinese assembler's increasing involvement in Apple's supply chain. From a new report by Nikkei Asia: The Guangdong-based company sometimes called "Little Foxconn," which has been deepening its relationship with Apple and is assembling iPhones for the U.S. technology giant for the ...
iphone 13 face id notch

China-Based BOE to Supply OLED Panels for iPhone 13 Models

Wednesday October 13, 2021 1:22 am PDT by
Apple has added display manufacturer BOE to its list of main suppliers of OLED panels for iPhone 13 models, according to a new report today from Nikkei Asia. The Beijing-based display maker began shipping a small number of organic light-emitting diode (OLED) displays for the 6.1-inch iPhone 13 in late September and is scheduled to increase those shipments soon, pending a final verification...
chinafoxconn

Widespread Power Outages in China Have Apple Suppliers 'Scrambling' to Keep Production on Track

Friday October 8, 2021 3:10 am PDT by
Apple suppliers in China are scrambling to keep production on track ahead of the busy holiday season in the face of widespread power outages in the country, according to a new report from Nikkei Asia. Widespread power outages in China are reigniting a push by tech manufacturers to shift production away from Asia's biggest economy, with suppliers to Apple, Amazon and others scrambling to keep...
iPhone 13 Feature Blue

Strong iPhone 13 Demand Sees Taiwan Suppliers Prioritize Apple Over Rivals

Wednesday September 29, 2021 4:21 am PDT by
Strong iPhone 13 demand in Taiwan and China has led Taiwanese component suppliers to prioritize production lines for Apple over rival Samsung and many Chinese mobile vendors, according to a new DigiTimes report. Taiwan-based makers of VCMs (voice coil motors), wire winding and other components of smartphone-use lens modules are giving priority to production for Apple, amid strong pre-sales of...
iPhone 13 Pro Feature Blue

iPhone 13 Reportedly Having Production Issues, Leaving Customers to Face Prolonged Delivery Times

Wednesday September 29, 2021 5:27 am PDT by
The newly launched iPhone 13 and iPhone 13 Pro are apparently hitting a snag in production, mainly due to a new wave of health concerns and limited manufacturing capacity for the devices' camera systems in Vietnam, according to a new report from Nikkei Asia. The iPhone 13 mini, iPhone 13, iPhone 13 Pro, and iPhone 13 Pro Max all feature sensor-shift optical image stabilization, a feature...
iphone 13 teal

iPhone 13 Chipmakers Poised to Scale Up Supply in the Third Quarter

Monday June 21, 2021 11:49 pm PDT by
Apple is set to receive supply priority status from pure play foundry TSMC for iPhone 13 chip orders going into the third quarter of 2021, as the Taiwanese partner grapples with orders for automative and other device chips amid a supply shortfall, according to DigiTimes. TSMC is also set to ramp up its output for the upcoming iPhone series in the third quarter, the sources indicated.Other chip ...
iphone 13 pro max display bleen

Apple Suppliers Refute Report Claiming iPhone 13 Production Being Lowered Due to Chip Shortages

Wednesday October 13, 2021 7:14 am PDT by
Apple's suppliers have refuted a report suggesting that due to the ongoing chip shortage, Apple has cut production orders for iPhone 13 models by as much as 10 million units for 2021. Yesterday, Bloomberg reported that due to the chip shortage, Apple had informed suppliers about cutting iPhone 13 production by as much as 10 million units for the remainder of the year. The news caused a drop...
AirPods Gen 3 Feature

Apple Producing AirPods 3 in China Instead of Vietnam Due to Pandemic Disruption

Wednesday August 18, 2021 3:58 am PDT by
Apple has been seeking to add geographic diversity to its supply chain for some time, with a shift of some production of the AirPods lineup to Vietnam being one significant step for the company. Apple reportedly began trialing production of regular ‌AirPods‌ in Vietnam over a year ago, and it was reported in December that Apple's ‌AirPods‌ suppliers were looking to line up financing to...
iphone12protriplelenscamera

Apple Shuffles Suppliers for Periscope Telephoto Lens in 2023 iPhones

Thursday September 2, 2021 2:27 am PDT by
Apple hopes to circumvent Samsung in the supply of components for a "folded" telephoto lens for 2023 iPhones, according to unnamed sources cited by Korean website The Elec. The report claims Apple has approached Jahwa Electronics, which is part of Samsung's supply chain, to supply an optical image stabilization module for the camera. Jahwa co-developed the technology with Samsung, which...
OLED iPad Air

2022 OLED iPad Air in Doubt After Apple Turns Down Samsung's Display Panels

Wednesday September 29, 2021 1:31 am PDT by
Apple has called off a joint project with Samsung to use a Samsung-developed OLED display for a forthcoming 10.9-inch iPad Air, according to a new report today from The Elec. The project was stopped due to either the single stack structure of OLED panel or profitability issues or both, people familiar with the matter said.Single stack refers to the current widely used OLED panel structure...