Apple Boosts Ties with China's Luxshare for Expansion

As Apple seeks to diversify its production and reduce dependence on China, The Wall Street Journal reports that the tech giant is increasingly leaning on Luxshare Precision, a Chinese firm known for its expertise in assembling Apple’s products.
 
Luxshare’s growing influence
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Luxshare, led by Grace Wang, is responsible for manufacturing several Apple products, including AirPods, the Apple Watch, and the recently launched iPhone 15. The company is also set to assemble Apple’s first AR/VR headset, Vision Pro, slated for release next year. This growing partnership underscores the challenges Apple faces in shifting production from China to other countries like India and Vietnam.
 
During a recent visit to Luxshare’s Apple Watch factory near Shanghai, Apple CEO Tim Cook lauded the company’s work. He highlighted Luxshare’s commitment to environmental sustainability, noting the solar panels powering the facility.
 
Navigating the Apple-Luxshare partnership

Despite Apple’s challenges in China, including government directives against using iPhones and other foreign devices, the company still produces the majority of iPhones in the country. This reliance is partly due to Chinese CEOs like Wang, who excel at meeting Apple’s exacting standards.
 
Luxshare’s expansion hasn’t been limited to Apple. Wang has emphasized the need for diversification, with the company venturing into the electric vehicle supply chain. However, the bond between Apple and Luxshare continues to strengthen. Luxshare is now involved in the “new product introduction” for Apple’s 2024 high-end iPhones, a role previously dominated by Foxconn.


​Source: Readwrite