Foxconn to Lose top-Tier iPhone assembly Allocation for First Time


In a blow to Foxconn, Apple is expected to hand key iPhone sixteen production responsibilities to Luxshare, considerably boosting the supply chain partner’s income increase over the next two years, in line with Apple analyst Ming-Chi Kuo.

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In his state-of-the-art Medium weblog post, Kuo stated Apple has already given Luxshare new product creation (NPI) approval for next 12 months’s iPhone 16 seasoned Max, that is a enormous win for the provider, for the reason that Foxconn has always won the highest-give up iPhone meeting NPI in previous years.

The approval accompanied Apple’s selection to transfer some iPhone 14 seasoned Max orders from Foxconn to Luxshare to diversify supply and mitigate chance, following the protests and riots that broke out in Foxconn’s largest iPhone manufacturing unit in Zhengzhou, China, in November 2022.

Luxshare’s manufacturing yield improvement schedule for the iPhone 14 seasoned Max ultimately proved higher than predicted, leading Apple to award NPI to the corporation for the 2024 model. meaning Apple believes Luxshare’s R&D and production skills have reached the level of a first-tier provider, in step with Kuo.

The analyst believes that Apple will now negotiate with the Indian government to assist Luxshare installation production traces in India, with the opportunity of floating the concept of a joint challenge to offset concerns from buyers approximately the geopolitical situation being negative for the assembler.

Luxshare’s iPhone enterprise should see large income growth, says Kuo, with the organisation expected to ship 45–50 million iPhones in 2023, up from about 20 million in 2022, indicating Apple’s increasing faith in and reliance on the assembler.

Apple desires to triple its iPhone manufacturing ability in India in the subsequent two years, as a part of a larger plan to diversify its supply chain out of China and into other parts of the sector. In keeping with one report, Apple has instructed Foxconn, Pegatron, and Wistron, 3 of its biggest suppliers, to increase their capability and manpower in the u . s ..

As things stand, production allocation for next year’s iPhone sixteen series is allotted to Luxshare (iPhone sixteen seasoned Max), Foxconn (iPhone 16 and iPhone 16 seasoned), and Pegatron (iPhone 16 Plus).