Foxconn looses iPhone 16 Max Pro orders while Luxshare grabs the exclusive offer

Foxconn has traditionally been responsible for assembling Apple's 'Pro' models. However, a recent report suggests a change in this arrangement starting from the iPhone 16 Pro Max in 2024. According…

By Nivedita Bangari

May 18, 2023

2 min read

Comments

Foxconn has traditionally been responsible for assembling Apple’s ‘Pro’ models. However, a recent report suggests a change in this arrangement starting from the iPhone 16 Pro Max in 2024. According to analyst Ming-Chi Kuo, Luxshare will take over the exclusive assembly rights for this particular model, marking the first time Foxconn has not received NPI (New Product Information) for an iPhone. This decision reflects Apple’s confidence in Luxshare’s manufacturing capabilities.

Luxshare, which already serves as a secondary assembly partner for Apple’s iPhone 15 Pro and iPhone 15 Pro Max, will now be entrusted with the sole responsibility of materializing the iPhone 16 Pro Max. In contrast, Foxconn’s role will be reduced.

Foxconn’s Zhengzhou plant, the world’s largest assembling facility, has traditionally supplied 70% of all iPhone shipments.

However, disruptions caused by COVID-19 lockdowns and subsequent riots impacted iPhone 14 Pro and iPhone 14 Pro Max shipments, resulting in significant revenue losses for Apple during the crucial holiday quarter.

While Luxshare’s production capabilities have been deemed on par with first-tier suppliers by Apple, Foxconn will still handle the assembly for the iPhone 16 Pro and regular iPhone 16, while Pegatron will take care of the iPhone 16 Plus. Luxshare’s increased responsibility is expected to be well-compensated, although specific details remain undisclosed.

This shift is a significant opportunity for Luxshare, as it is projected to ship between 45-50 million iPhones in 2023, a substantial increase compared to the roughly 20 million units it shipped in 2022.

As Apple aims to mitigate risks and streamline its supply chain, Luxshare’s expanded role signifies a growing partnership with the tech giant. The transition reflects Apple’s trust in Luxshare’s ability to handle the complex production process, while Foxconn adjusts to the evolving dynamics in the iPhone assembly landscape.

Also Read:

Source