Luxshare Emerges as Apple's Sole Assembly Partner for Vision Pro Headset Amid Manufacturing Challenges

Quincy Jon, Tech Times 31 July 2023, 03:07 pm

According to a recent Financial Times story, Luxshare, a Foxconn competitor located in Shenzhen, China, is the only assembly partner for Apple's Vision Pro headset.

Although Apple has not formally acknowledged the collaboration, Luxshare's prototype resiliency was cited as the key factor in winning the order to manufacture the sophisticated Vision Pro headset, as per a report from Apple Insider.

Since Luxshare began producing essential connections for the tech giant in 2011, the company's partnership with Apple has developed progressively over time. Working closely with Apple during the development of the Vision Pro headset, Luxshare overcame a number of manufacturing obstacles, notably with the micro-OLED displays, which caused Apple to lower its production forecast for the following year.

Apple's Reliable Partner

Despite the difficulties, Luxshare has emerged as the exclusive manufacturer of the Vision Pro, a product experts have called the "most complex consumer device anyone has ever made." Luxshare is now posing a serious threat to Foxconn, the largest contract electronics manufacturer worldwide.

The transformation of Luxshare from a connection subcontractor in 1999 to a publicly traded firm in Shenzhen in 2010 and a direct supplier to Apple starting in 2011 is impressive. Sales rose from $350 million in 2011 to $29.9 billion last year, according to the Financial Times.

Luxshare's chairperson is Grace Wang, a co-founder and one of Foxconn's first workers in 1988, Mactrast reported. She is recognized for driving the company's expansion outside of China. The iPhone 16 Pro Max is anticipated to go into production in 2024 by Luxshare.

The difficulty of the jobs given to Luxshare shows how highly Apple regards the firm. Before extending its manufacture to include vital parts for many Apple devices, including AirPods, the Apple Watch, and iPhones, Luxshare made straightforward connections for the iPhone and MacBook.

Luxshare's success with Apple has improved its reputation with other customers, and in 2018, Huawei acknowledged the firm as a "gold supplier."

Experts believe Apple CEO Tim Cook's excitement for Luxshare has contributed to the company's quick ascent in the market. Luxshare has profited by taking part in Apple's initiatives to expand the scope of its supply chain outside of China.

Luxshare to Work on iPhone 15 Soon

The iPhone 15 series is Luxshare's next project, and manufacturing is set to start in China in August before the official introduction. The firm is threatening Foxconn's hegemony by securing a sizeable portion of Apple's orders to construct the new smartphone, including luxury iPhone Pro versions.

According to senior analyst Ivan Lam from Counterpoint, Luxshare's capacity to create enough certified phones swiftly and effectively will determine whether it successfully captures a more significant share of the smartphone manufacturing market.

Due to its affordable prices and flexibility, Luxshare is a desirable choice for Apple, and based on how well it produced the iPhone 15, the business is even being evaluated for a more prominent role in making the iPhone 16 series.

Apple has lowered its manufacturing goals for the Vision Pro headset due to issues with its complicated production. According to a report from the Inquirer, the corporation will only produce around 400,000 units in 2024 instead of the original estimate of one million.