Luxshare Precision may become Apple’s top supplier – to replace Foxconn

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Apple is a huge company that has many foundry partners. However, Foxconn still has the most orders so far. Nevertheless, this situation may soon change quietly. According to a recent report, Apple seems to be placing more value on Shenzhen-based Luxshare Precision. The report claims that Apple will transfer more orders to Luxshare. Ordinarily, these orders should go to Foxconn. Currently, Luxshare is the main foundry for AirPods. Apple CEO, Tim Cook is very satisfied with AirPods supply chain and market performance.

Luxshare Precision

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Wang Laichun, the founder of Luxshare, used to be a “working girl” at the Foxconn factory. She worked for Foxconn for about 10 years. At the time, there was no indication that Luxshare Precision’s market value will surpass Foxconn. There are even reports that Foxconn has a department that is dedicated to the research of Luxshare Precision. If this is true, then there is a sense of crisis in the Foxconn camp.

The report also pointed out that Cook will also invest a lot of resources to cultivate the Chinese market during his tenure, including re-adjusting the industrial chain and introducing more local partners. After all, the Greater China market contributes 20% of Apple’s revenue.

However, it could also be that Apple is just trying to diversify its supply chain. Recall that Apple does not like to rely too much on a single supplier. If the company notices that it has too much reliance on a brand, it starts looking for alternatives. Apple did this with Qualcomm when it did not want to put too much hope on Qualcomm’s chips. The situation is also the same with Samsung. Apple has since added LG to its display supply chain and it is consistently trying to add BOE. In fact, Chinese BOE already makes displays for Apple’s smartwatches and replacement models of the iPhones.

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