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macrumors bot
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Apr 12, 2001
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Luxshare Precision, one of Apple's suppliers for devices like AirPods and Apple Watch, is going to be taking on more responsibility in the coming months as it prepares to begin assembling Apple's iPhones.

In a note to investors, Apple analyst Ming-Chi Kuo this afternoon shared details on what Luxshare Precision will be working on this year.

applewatchseries5.jpg

The supplier is expected to enter the iPhone assembly business "in the long run" and earlier than market expectations to allow Apple to diversify its supply chain and cut down on the risk of supply shortages. Kuo believes Luxshare Precision will become a key iPhone case component supplier by the second half of 2021.
The key reason we make this prediction is because the new iPhone product cycle is shortened, so if Luxshare Precision can enter the iPhone assembly business, it is expected to reduce Apple's new iPhone development and supply risk. To ensure a smooth initial assembly business, we expect Luxshare Precision to start assembly from older iPhone models.
Luxshare Precision will start out assembling older iPhone models and will work closely with casing manufacturers to cut down on initial entry challenges. Luxshare Precision is said to have a unique vertical integration advantage because it also provides many iPhone parts and accessories to Apple.

Kuo says that he believes Luxshare Precision will also ship the new Apple Watch expected in the second half of 2020, which would be the Series 6 model. There are no details included about the device, but past rumors have suggested the new device could feature faster performance, improved water resistance, and better wireless transmission.

Rumors also indicate we can expect to see sleep tracking functionality introduced as one of the key capabilities of the Apple Watch Series 6.

Prior information from DigiTimes about the Apple Watch Series 6 suggested the device would be assembled by Foxconn and Compal Electronics while Luxshare Precision would assemble older Apple Watch models, so Kuo's information does conflict with what we've previously heard.

It's possible that Compal Electronics, Foxconn, and Luxshare Precision will all share orders for the Apple Watch Series 6 models.

According to Kuo, Apple's assembly orders in 2020 are "better than expected," which will benefit suppliers like Luxshare Precision "in the long term."

Article Link: Luxshare Precision to Assemble Apple Watch Series 6 and Older iPhones
 

DeepIn2U

Suspended
May 30, 2002
8,674
3,280
Toronto, Ontario, Canada
Absolutely not one reason given by this analyst why yet another company, based in China would be able to help offsite any risk or delays in production of 2 brand new Apple products; and yet not affected by the coronavirus.

seems more like throw everything at the end all and await what sticks with this guy.
 
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Relentless Power

macrumors Nehalem
Jul 12, 2016
35,357
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So with Quanta computer out, I’m curious to see how the supply would be any different in terms of demand on the Apple Watch launches, which is also traditionally had a great shortage the following weeks after the launch. I’m not really concerned about the quality suffering with a different supplier, because Apple has a stringent set of standards for every product to be met by their expectations, but mainly if Luxshare can have a higher volume of units readily available and/or decrease some of the back order time that follows typically every Apple Watch launch.
 
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szw-mapple fan

macrumors 68020
Jul 28, 2012
2,149
1,996
Absolutely not one reason given by this analyst why yet another company, based in China would be able to help offsite any risk or delays in production of 2 brand new Apple products; and yet not affected by the coronavirus.

seems more like throw everything at the end all and await what sticks with this guy.

It's probably cheaper and faster to wait a few months for the epidemic to die down than to set up a entirely new supply chain elsewhere. As to his credibility, he has been predicting Apple supply chains for years and has been very accurate (other than some missed timelines), if you look back. He's no Digitimes.
 
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