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Luxshare’s growing influence begins to irritate Foxconn
Apple has grown Foxconn into the largest contract electronics manufacturer, but as a counterbalance in recent years, it has tried to increase the influence of the Chinese Luxshare, which started with the production of wireless headphones, but is gradually preparing to master the release of other Apple products. Foxconn doesn’t like this rivalry for obvious reasons.
Image source: Reuters
Luxshare to be the first China-headquartered company to be entrusted with contract assembly of Apple smartphones. Luxshare’s revenue is still 20 times less than Foxconn’s, but a Taiwanese rival could use political motives to compete, Reuters notes. Informed sources are convinced that there is no doubt about the growth of Luxshare’s influence, the only question is how fast it will be.
Foxconn is now trying to prove that Luxshare has financial support from the Chinese state. According to the Taiwanese company, which has not been publicly announced, the Chinese authorities are trying through the development of Luxshare to create a supply chain of components that could be used for the production of electronics sold in the domestic market of China. Luxshare has already managed to receive about $ 148.8 million in government subsidies for the period from 2021 to 2021.
Foxconn, in comments to Reuters, deny there is a dedicated team to discredit Luxshare. Representatives of the latter declined to comment on the situation, as did Apple employees. Luxshare dates back to 2021, and was founded by Grace Wang, a former employee of Foxlink, owned by the founder of Foxconn.
The influence of Luxshare was gradually strengthened through the acquisition of small component manufacturers. This year, the company got two Wistron factories that assemble iPhones. Luxshare now receives 58% of its revenue from contracts with Apple. According to analysts, in the next five years, the Chinese company will be able to produce up to 30% of smartphones of this brand. According to the source, Luxshare is actively recruiting valuable personnel from Foxconn, sparing no effort and money.