Foxconn will lose its first-ever top-tier iPhone assembly allocation
According to Apple analyst Ming-Chi Kuo, Luxshare’s earnings growth over the next two years is likely to increase dramatically. It is expected to happen as a result of Apple giving Luxshare (the supply chain partner) the primary responsibility for producing the iPhone 16 in a blow to Foxconn.
According to Kuo, Apple has already approved a new product introduction (NPI) to Luxshare. Luxshare has received the NPI for the iPhone 16 Pro Max. It is a huge accomplishment for Luxshare given the fact that Foxconn has consistently received the NPIs for high-end iPhones in the previous years. Besides this approval, Apple has also transferred some iPhone 14 Pro Max orders from Foxconn to Luxshare. It was done because of the riots that were reported in Foxconn’s largest iPhone factory in Zhengzhou, China, in November 2022. Furthermore, it s a strategy used by Apple to diversify its supply chain.
After receiving the order for iPhone 14 Pro Max, Luxshare showed improved production yields. This could have paved the way for Luxshare to receive NPI for the 2024 model. Kuo mentions that such a move by Apple suggests that it has a firm belief in the R&D and production capabilities of Luxshare and that it can be selected as a first-tier supplier.
Furthermore, Kuo states that Apple could now possibly negotiate with the Indian government and thus help Luxshare set up a production line in India. Kuo predicts that Luxshare’s iPhone business would have strong profit growth, with the company shipping 45–50 million iPhones in 2023, up from around 20 million in 2022, demonstrating Apple’s growing confidence and dependence on the assembler.
In addition to this, Apple is concerned with increasing its iPhone production in India. The company wants to diversify its supply chain. In accordance with another report, the company has asked Foxconn, Pegatron, and Wistron to increase their capacity and manpower in India. As of now, the production allocation for the iPhone 16 series is as follows Luxshare (iPhone 16 Pro Max), Foxconn (iPhone 16 and iPhone 16 Pro), and Pegatron (iPhone 16 Plus).
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.