Text/Di Lin Review/Zi Yang Proofreader/Zhi Qiu
Although the flagship of the iPhone 13 series has been on the market for less than half a year, news about the new machine of the iPhone 14 series on the Internet has begun to emerge endlessly.
In addition to those configuration parameters about the iPhone 14 series, the leaky information even includes the distribution of foundry orders for the iPhone 14 series.
According to past practice, Apple will deliver the vast majority of orders to the foundry giant Foxconn, and a small number of orders will be taken by other foundries.
But now, there is a Chinese mainland foundry leader that grabs orders with Foxconn - Luxun Precision.
Grab apple iPhone 14 order
On January 1, 2022, IT Home news, Taiwan media reported that Japanese legal persons expect that Apple's iPhone 14 series orders will be jointly taken over by Foxconn, Pegatron and Luxshare Precision.
Among them, Foxconn's orders still account for the largest proportion, followed by Pegatron, and Luxshare Precision mainly oem 6.1-inch iPhone 14Pro.
The delivery of the high-end version of the iPhone 14 series new machine to Luxshare Precision is enough to see apple's high emphasis on Lixun Precision.
You know, before that, Luxshare Precision mainly oem AirPods and other wearable devices for Apple, and did not involve the assembly of iPhones.
Therefore, in the author's opinion, the future Luxshare Precision may become a strong enemy of Foxconn. In this regard, Fast Technology reported at the end of 2021 that Apple may transfer more and more orders originally handed over to Foxconn to Luxun Precision.
It is worth mentioning that Luxshare Precision FOUNDry iPhone 14Pro is just one of the signs that Apple wants to cultivate this continental foundry.
The rise of domestic foundry leaders
On December 22, 2021, the Japanese media "Nikkei Asia" reported that Luxshare Precision will spend about 11 billion yuan to build a large-scale manufacturing base in Kunshan, Jiangsu Province, mainly for assembling iPhones, with the support of Apple.
In this regard, Nikkei Asia also said that the company aims to break the monopoly of Taiwanese competitors Foxconn and Pegatron for more than a decade for iPhone assembly.
It can be seen that with the direct or indirect support of Apple, Luxshare Precision, the Chinese mainland foundry leader, has risen strongly.
Back then, Luxshare Precision was only a small business shaded by Foxconn, and the company's largest customer was Foxconn, and the latter was also the controlling shareholder of Luxshare Precision.
It is no exaggeration to say that Gou has an understanding of the company that "copied" the Foxconn model and was built by former Foxconn employees.
But what Gou did not expect was that the fledgling small company that relied on Foxconn for survival would gradually break away from Foxconn, catch Apple's speedboat, and become a competitor for Foxconn.
It is expected to become the second Foxconn
The reason why Luxshare Precision can become a competitor of Foxconn in just a few years is mainly for two reasons in the author's opinion.
On the one hand, although Luxshare Precision "copied" Foxconn's model, it was different from Foxconn. The company continues to expand while not forgetting to improve its technical strength, and because of this, Luxshare Precision can win the favor of Apple with its outstanding foundry efficiency and quality control.
On the other hand, Apple doesn't want to see Foxconn alone forever. Apple naturally understands that eggs should not be put in one basket, so in recent years it has been trying to cultivate other foundries to achieve the purpose of balancing Foxconn.
This not only increases its bargaining power in the supply chain, but also allows it to rely heavily on the potential risks of a foundry on a large scale.
Backed by the rise of Foxconn, absorbing the advantages of Foxconn, and having the core competitiveness of Foxconn, Luxshare Precision has naturally become a new choice for Apple.
However, in the author's opinion, although Luxshare Precision has become a popular foundry in front of Apple based on various conditions, the company is inevitably encountering a model "trap" because of "copying" Foxconn.
Pattern "Trap"
According to the financial report data released by Luxshare Precision, Apple's revenue accounted for 55.43% in 2019, but this value increased to 69% in 2020.
Obviously, the current operating income and even net profit of Luxshare Precision have a highly bound relationship with Apple's orders.
In the case of Apple's new product market response is good, Luxun Precision naturally does not need to worry about operating income. But once Apple had a rare cold situation in the year the iPhone XS series was launched.
Then Luxshare Precision will also be like Foxconn, with a sharp decline in operating income.
In fact, there are not a few Chinese suppliers with similar risks, and there are many Chinese suppliers who have paid the price because they are highly dependent on Apple's orders.
For example, OFILM is a lesson for Luxshare Precision.
Write at the end
Therefore, in the author's opinion, it is true that there are many benefits to breaking into Apple's supply chain, but if you rely on it, it is likely to be more than worth the loss.
As CCTV said before, Chinese suppliers need to get rid of their dependence on the "fruit chain" as soon as possible.