May 28, 2024
Foxconn Will Not Be Exclusive Assembler of Next Generation iPhone Pro [Report]

Foxconn Will Not Be Exclusive Assembler of Next Generation iPhone Pro [Report]

Posted December 28, 2022 at 3:53pm by iClarified
Foxconn will not be the exclusive assembler of next generation iPhone Pro models, according to a new TrendForce report

Apple struggled to produce iPhone 14 Pro and iPhone 14 Pro Max models this quarter as strict COVID lockdowns in China crippled Foxconn's output. TrendForce believes that Apple plans to add Luxshare into the supply chain as a step towards to reducing overall risk.

For years, Apple has outsourced the assembly of iPhone Pro models exclusively to Foxconn. However, due to the imperative of risk management, getting a second EMS provider for this task has been under consideration for some time as well. Apple is reportedly to have made the plan of using another EMS provider besides Foxconn for the assembly of the iPhone 14 Pro models in near future. This will serve as a trial run for diversifying its partners and locations for iPhone production. Moreover, due to the recent outbreak at Zhengzhou, Apple has also made decision of employing Luxshare as one of the assemblers for the upcoming iPhone 15 Pro Max. However, Luxshare's only iPhone assembly plant is located in China. In Vietnam, Luxshare has a plant for assembling Apple-related accessories, but the company currently has no plan for setting up a new iPhone production line there.

TrendForce also notes that Apple is aiming to increase production outside of China. Eventually, Apple will likely need to produce devices for the North American market from other countries like India and Vietnam. It's reported that Apple plans to double its production capacity in India next year. Eventually, at least 30-35% of production could be located in the two countries.

More details in the full report linked below...

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Foxconn Will Not Be Exclusive Assembler of Next Generation iPhone Pro [Report]

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