Apple to sign Luxshare for iPhone production in China, says report; hikes battery replacement price by $20

Amid constant disruptions in China due to lockdown, a surge in Covid cases, and employee unrest at a Foxconn factory, technology giant Apple Inc is all set to sign its manufacturing contractor Luxshare Precision Industry Co Ltd to produce premium iPhone models, people familiar with the matter said. 

Earlier, Luxshare was producing only a small number of the iPhone 14 pro-Max at its Kunshan plant to make up for the lost production of Foxconn’s Zhengzhou factory, the Financial Times reported. 

The COVID-19 outbreak and the curbs to control it, prompted thousands of workers to leave the Foxconn plant.

In November, Apple warned of lower shipments of its premium iPhone 14 and models following production cuts. 

Foxconn also known as Hon Hai Precision Industry and Pegatron Corp has been leading a dominant position in Apple’s supply chain. 

Watch | World Business Watch: Apple to sign deal with Luxshare for iPhone production in China

While a source told Reuters that the Foxconn plant is almost back to its originals position with almost 90 per cent of December’s shipments reaching, some media reports believe that Apple’s shipments are likely to slip in the holiday quarter. 

For upcoming projects, TrendForce, an industry research firm on Saturday said that Apple has decided to employ Luxshare as one of the assemblers for its iPhone 15 Pro Max. 

The firm also added that only Luxshare’s assembling plant is set up in China and has no plans on setting up its iPhone production line. 

The tech giant this week on its website also said that the out-of-warranty iPhone owners will have to now spend $20 more to replace their batteries at an Apple store.  

Starting from March 01, all old iPhones before 2022 will see their battery replacements charge increased by $20.

These increased battery prices will also apply to not just iPhones but also MacBooks, some iPads and a few international markets.

(with inputs from agencies)