Apple is a giant with many foundry partners. However, Foxconn has the most orders so far. Nevertheless, this situation may change quietly soon. According to a recent report, Apple seems to put more value on Shenzhen-based Luxshare Precision. The report claims that Apple will transfer more orders to Luxshare. Normally, these orders are sent to Foxconn. Luxshare is currently the leading foundry for AirPods. Apple CEO Tim Cook is very pleased with AirPods’ supply chain and market performance.
Wang Laichun, the founder of Luxshare, was a “working girl” at the Foxconn factory. She worked at Foxconn for about 10 years. At that time, there was no sign that the market value of Luxshare Precision would exceed Foxconn. There are even reports that Foxconn has a department dedicated to the study of Luxshare Precision. If this is true, the Foxconn camp is in jeopardy.
The report also points out that Cook will invest a lot of resources, such as readjusting the industrial chain and introducing more local partners, to open up the Chinese market during his tenure. After all, the Greater China market accounts for 20% of Apple’s revenue.
However, Apple may just be trying to diversify its supply chain. Recall that Apple doesn’t like being overly dependent on a single supplier. If a company finds it too dependent on the brand, it begins looking for alternatives. Apple did this with Qualcomm when they didn’t want to expect much from Qualcomm’s chips. The situation is the same for Samsung. Since then, Apple has added LG to the display supply chain and is consistently trying to add the BOE. In fact, the Bank of England has already manufactured displays for Apple’s smartwatches and alternative models of the iPhone.
https://www.gizchina.com/2021/12/31/luxshare-precision-will-become-apples-top-supplier-to-replace-foxconn/ Luxshare Precision could become Apple’s top supplier to Foxconn