What you need to know
- Apple has reportedly increased its reliance on China suppliers for iPhone 13.
- Chinese electronics maker Luxshare will make 3% of the iPhone 13 series.
- Production is set to begin later this month ahead of an expected September release.
A new report says Apple is increasing its reliance on suppliers in China for the launch of iPhone 13, with electronics maker Luxshare set to make 3% of iPhone 13 models.
From Nikkei Asia:
Apple is tapping more suppliers in China for key roles in producing the latest iPhone, a sign that the country's technological competitiveness is continuing to increase despite Washington's attempts to rein in Beijing's tech ambitions.
Chinese electronics maker Luxshare Precision Industry will build up to 3% of the upcoming iPhone 13 series, winning orders away from Taiwanese rivals Foxconn and Pegatron, Nikkei Asia has learned. Apple is slated to produce between 90 million and 95 million of the new iPhones through January.
The report says Luxshare is set to begin making the iPhone 13 Pro this month, noting that newcomers to the lineup usually start by helping to make Apple's older models (the iPhone 12 in this case), making the manufacturer's situation a tad unusual.
One rival supplier reportedly said that it could not let its guard down against Luxshare despite its very small share of orders, stating that if it couldn't compete Luxshare could become a major source.
One analyst noted the need for Apple to diversify its supply chain "amid the geopolitical uncertainties that will continue to rise in the coming years." The news is good for consumers because it reduces the likelihood that the iPhone 13's supply will be constrained, reducing shipping lead times and delays to orders. A more diverse supply chain means more people will ultimately be able to buy what is shaping up to be the best iPhone ever.