Wanting to increase iPhone 13 production, Apple has made an agreement with a new supplier. Luxshare Precision will cover 3 percent of production.
Continuing to grow rapidly despite the coronavirus epidemic and problems in the supply chain, Apple aims to produce 90 to 95 million iPhones by January next year. In order for the company to achieve this goal; the iPhone 13 series must see the expected interest and, more importantly, the supply chain must be able to meet the demand.
According to a Nikkei Asia report, Apple has secured an agreement with China‘s Luxshare Precision to meet its manufacturing targets. The company received more than 3% of orders from Foxconn and Pegatron, two of Apple’s major suppliers. Although this appears to have a low value, it is very reasonable since this is a fairly new firm. If sales are good, the number of orders and the percentage given will inevitably increase.
Chinese manufacturer annoyed Apple’s other suppliers
Although Luxshare owns a small percentage of iPhone production, statements based it is bothering rival manufacturers. According to the reports, other suppliers are cautious against the competitiveness of the Chinese manufacturer; and the possibility of having larger orders in the future.
Luxshare‘s assessment of iPhone production is yet another sign that Apple has evaded US trade restrictions in China. Lens Technology, another China-based manufacturer that has previously supplied back glass, will supply metal cases this year. Sunny Optical, a camera lens maker, also produced a small number of camera lenses.
The news comes after BOE Technology said that it will soon begin supplying OLED panels for the iPhone 13; subject to Apple‘s approval. The news is also seen as Apple‘s intention to diversify its supply chain as much as possible in order to strengthen its bargaining power with large corporations such as Foxconn and Samsung. Also, don’t forget to check out our other news here.