Luxshare wants to reach out, not just a consumer electronics manufacturer

Luxshare is looking to find new growth drivers beyond consumer electronics amid geopolitical and economic uncertainty that could accelerate the shift of the global supply chain. Luxshare President Grace Wang Laichun recently said that the company wants to break into telecommunications and cars.

At an event, Ms. Wang shared that a few years ago, Luxshare manufactured electronic components in telecommunications products and vehicles. Ms. Wang said the business maintained its rapid growth momentum last year despite the complicated economic situation.

Luxshare – Apple’s major AirPods supply partner – is said to have started assembling in small quantities iPhone 14 Pro Max at the factory in Kunshan (China). In addition, according to research firm TrendForce, Luxshare also won an order to produce iPhone 15 Pro expected to be released this year. The company did this after rival Foxconn encountered production interruptions during Covid-19 in China.

Ms. Wang’s comments reflect the insecurity of Apple’s electronics manufacturing contractors, especially Chinese suppliers, when dependent on the US company. “Apples” is looking to assemble more in Vietnam and India as the US-China technology war continues to escalate.

Being too dependent on one customer always puts them at risk, even if that customer is Apple, Samsung or Xiaomi, according to analyst Toby Zhu from market research firm Canalys. He also said that contractors are increasingly wary about supply agreements with Apple because “sometimes it doesn’t guarantee consistent orders.”

For example, the case of Chinese audio components maker Goertek became a valuable lesson when it adjusted its 2022 revenue to a maximum of 60%. The reason given is “a big foreign customer” Request to stop production “a smart acoustic product”. According to analyst Ming Chi Kuo, the product in question is AirPods Pro 2.

(According to SCMP)