First in history: New company will produce the iPhone 16 Pro Max

Apple has reportedly decided to give Luxshare exclusive rights to assemble the iPhone 16 Pro Max in 2024. This is a significant change from previous years, when Foxconn has been the sole assembler of Apple’s high-end “Pro” models.

Luxshare to Take Over Production of iPhone 16 Pro Max from Foxconn in Unprecedented Move

According to analyst Ming-Chi Kuo, The decision to give Luxshare the exclusive contract is likely due to a number of factors. First, Luxshare has been investing heavily in its production capabilities in recent years. The company has opened new factories in China and India, and it has also been expanding its workforce. As a result, Luxshare is now better positioned to meet Apple’s demand for high-quality iPhones.

Second, the decision to give Luxshare the exclusive contract is likely a way for Apple to diversify its supply chain. Foxconn has been Apple’s main assembler for many years, but the company has been facing some challenges in recent years. For example, Foxconn’s Zhengzhou plant was hit by a COVID-19 lockdown in 2022, which disrupted production of the iPhone 14 Pro and iPhone 14 Pro Max. By giving Luxshare the exclusive contract, Apple is reducing its reliance on a single supplier.

Third, the decision to give Luxshare the exclusive contract is likely a way for Apple to reduce costs. Luxshare is a relatively new player in the iPhone assembly market, and it is likely willing to work with Apple to lower costs. This could help Apple to keep the price of the iPhone 16 Pro Max competitive.

The decision to give Luxshare the exclusive contract is a significant development for the iPhone assembly market. It is a sign that Apple is willing to diversify its supply chain and reduce its reliance on a single supplier. It is also a sign that Luxshare is becoming a major player in the iPhone assembly market.

Impact on Foxconn

The decision to give Luxshare the exclusive contract is a major blow to Foxconn. The company has been Apple’s main assembler for many years, and it has benefited from the close relationship between the two companies. However, the decision to give Luxshare the exclusive contract is a sign that Apple is no longer as reliant on Foxconn. This could lead to a decline in Foxconn’s revenue and profits.

Foxconn is likely to try to win back Apple’s business by investing in new production capabilities and by reducing costs. However, it will be a challenge for the company to compete with Luxshare, which is a rapidly growing player in the iPhone assembly market.

Impact on Luxshare

The decision to give Luxshare the exclusive contract is a major opportunity for the company. Luxshare is a relatively new player in the iPhone assembly market, but it has been growing rapidly in recent years. The exclusive contract with Apple will give Luxshare a major boost, and it will help the company to become a major player in the global smartphone assembly market.

Luxshare is likely to invest heavily in its production capabilities in order to meet Apple’s demand for iPhones. The company is also likely to expand its workforce in order to meet the increased demand. The decision to give Luxshare the exclusive contract is a major step forward for the company, and it is likely to lead to significant growth in the years to come.

Conclusion

The decision to give Luxshare the exclusive contract is a significant development for the iPhone assembly market. It is a sign that Apple is willing to diversify its supply chain and reduce its reliance on a single supplier. It is also a sign that Luxshare is becoming a major player in the iPhone assembly market. The decision is likely to have a major impact on both Foxconn and Luxshare. And it will be interesting to see how the two companies respond in the years to come.