May 24, 2024
Foxconn Loses Highest-level iPhone Assembly NPI to Luxshare [Kuo]

Foxconn Loses Highest-level iPhone Assembly NPI to Luxshare [Kuo]

Posted May 18, 2023 at 12:32pm by iClarified
Luxshare has obtained the NPI for the 2024 iPhone 16 Pro Max, marking the first time Foxconn has not won the the highest-level iPhone assembly NPI, reports TF International Securities analyst Ming-Chi Kuo.

During the NPI (New Product Introduction) phase, during Luxshare will prepare the bill of materials (BOM), establish proper production and testing machines, and set a quality monitoring process for the iPhone 16 Pro Max.

Apple has transferred some iPhone 14 Pro Max orders to Luxshare for risk diversification after the Foxconn Zhengzhou incident in November 2022. Luxshare's production yield improvement schedule for the iPhone 14 Pro Max is better than expected, so the company has been awarded the iPhone 16 Pro Max assembly NPI for 2024. It means that Apple believes that Luxshare's R&D and production capabilities have reached the level of first-tier suppliers. Luxshare's iPhone business profit will also benefit from this improved capability.

Kuo also believes that Apple will negotiate with the Indian government to help Luxshare set up production lines in India with solutions such as a joint venture.

Based on experience with iPhone assembly, profits will improve significantly once shipments exceed 30 million units per year. Luxshare expects to ship 45–50 million iPhones in 2023 (up from approximately 20 million in 2022), with the iPhone 15 Plus NPI already secured and the 15 and 15 Pro Max as a second supply.

Finally, Kuo says that iPhone 16 assembly NPI will be distributed as follows:
● Luxshare - iPhone 16 Pro Max
● Foxconn - iPhone 16 Pro / iPhone 16
● Pegatron - iPhone 16 Plus

Apple is expected to unveil its iPhone 16 models in September of 2024. Current rumors suggest the Pro models will get larger displays and periscope lenses. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more iPhone updates.

Foxconn Loses Highest-level iPhone Assembly NPI to Luxshare [Kuo]
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