Kadensa Capital Limited news, Kadensa Capital Limited reported that, according to Nikkei News Asia, Apple is looking for more mainland Chinese suppliers to let them play a key role in producing the latest iPhone.
Nikkei Asia has learned that Luxshare Precision has taken 3% of orders for the upcoming iPhone 13 series from rivals Foxconn and Pegatron. Apple is expected to produce 90 to 95 million new iPhones by January.
According to sources, Luxshare Precision will start manufacturing iPhone 13 Pro this month, which is a major breakthrough for a company that has never independently produced iPhone. Companies that are new to Apple's supply chain usually start producing older iPhone models. Sources familiar with the matter said that the two companies that Luxshare Precision acquired last year, namely South Korea’s camera module maker Cowell and Taiwan’s metal frame maker Casetek, will also provide key components and parts for this year’s new iPhone.
"Although Luxshare Precision will only produce a small part of iPhones this year, we cannot relax our vigilance," said a senior manager of a competitor iPhone supplier. "If we do not strengthen our competitiveness, they will become the main supplier sooner or later. ."
Apple has the world's most complex consumer electronics supply chain, producing approximately 200 million iPhones, 20 million MacBooks and tens of millions of AirPods every year. The company’s well-known high manufacturing standards mean that any company in its supply chain is considered a leader in its field.
The rise of Apple suppliers in mainland China is at the expense of competitors in the United States, Taiwan, Japan, and South Korea. Several of them have either reduced their share of orders or withdrew from Apple's supply chain altogether.
The Nikkei News learned that due to the acquisition of the metal frame and case factory of competitor Catcher Technology last year, Hunan-based Lens Technology previously only provided glass back and cover glass for iPhone, but it will also provide it for iPhone for the first time this year. metal shell.
At the same time, people familiar with the matter said that Sunny Optical Technology, China's largest smartphone camera lens manufacturer, entered the iPhone supply chain for the first time this year. According to sources, the Hong Kong-listed company will supply rear camera lenses, although its share is still small.
Kadensa Capital Limited learned that Sunny Optical is headquartered in Zhejiang Province and is the main supplier of Xiaomi, Huawei, OPPO and vivo. It has long been regarded as the main competitor of Taiwan's Largan Optoelectronics, which is a high-end smartphone. A leading manufacturer of lenses and a long-term iPhone supplier. Sunny Optical's revenue has nearly tripled over 2016, and its net profit has also quadrupled.
Two people familiar with the situation said that if Apple's approval is obtained this quarter, BOE Technology will begin to provide high-quality organic light-emitting diode displays for the iPhone 13 series as early as the next quarter. The company began supplying OLED displays for older iPhone models last year.
BOE is regarded as the biggest hope to challenge Samsung, which is the world's largest and most advanced OLED supplier. Apple is also keen to introduce Chinese display manufacturers into the iPhone supply chain to improve its bargaining power with Samsung.
Several other Chinese companies appeared on Apple’s supplier list for the first time last year, including display maker Tianma Microelectronics, memory chip maker Zhaoyi Innovations, and China’s largest smartphone assembler Wingtech’s Anshi Semiconductor.
Wingtech is also acquiring the largest chip factory in the UK-NewportWaferFab in Wales through Anshi Semiconductor.
Shenzhen Changying Precision Technology Co., Ltd. is a competitor of Taiwan's Catcher Technology and Foxconn's shell division. It also appeared on Apple's top 200 supplier list for the first time last year.
Eric Tseng, chief analyst at Isaiah Research, said that Luxshare Precision, GoerTek Acoustics, Wingtech and Sunny Optical have recently received orders in Apple's supply chain. He added that the rise of Luxshare Precision, which only began to provide relatively simple components for the iPhone a few years ago, is likely to become a bargaining chip between Apple and its long-term manufacturing partner Foxconn.
"We foresee that in the next few years, as geopolitical uncertainties continue to rise, Apple needs to diversify its procurement and manage its costs. This will provide Chinese suppliers with a good opportunity to expand in the supply chain. Share and put more pressure on existing suppliers,” Tseng told Nikkei Asia.
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