Chinese electronic components manufacturer Luxshare has signed an iPhone 14 manufacturing contract with Apple.
The announcement of the deal saw Luxshare shares rise as much as 3.1% in the early hours of Thursday after it dipped by 10% on Wednesday.
Luxshare contract with Apple comes after its rival Foxconn halted production lines in Zhengzhou, China, following protests over China’s stringent Covid measures.
Previously, the vast majority of Apple’s iPhone 14 Pro and Pro Max were produced at Foxconn’s Zhengzhou factory.
However, as Foxconn’s Zhengzhou factory repeatedly affected production due to the epidemic last year, Apple’s production in China was temporarily interrupted, and the iPhone Pro production fell short of expectations.
This spurred the tech giant to sign a contract with Luxshare Precision which has been producing a small number of iPhone 14 Pro Max to make up for the loss of production at Foxconn’s Zhengzhou factory last year.
Luxshare however refuted claims of production cuts after it was reported that “Apple has asked suppliers to reduce production, and Luxshare Precision has suffered the most.”
The company said via a statement,
“The cooperation between Luxshare and its existing customers is taking place normally, and operations are carrying on in an orderly manner in accordance with the work plan”, adding that there are no significant changes to its business as reported in the media.
Luxshare is reportedly a key player in Apple supply chain. Reports disclose that the Chinese manufacturer is the world’s biggest maker of AirPods and a producer of iPhone premium models.
The company has been steadily winning more and more Apple business shares, and the transfer of iPhone 14 Pro orders represents a successful expansion of the company’s business.
Founded in 2004 in Dongguan, China, the company is engaged in the research, development, production, and distribution of computer and electronic connectors.
It offers cable assemblies, test fixtures, antennas, power cords, precision metal & plastic components, acoustics, and other electronic components.
It was listed publicly on the SME board of the Shenzhen Stock Exchange in 2010.