Apple looks to remove reliance from Foxconn, indirectly pushes for competition

foxcoon breakup rect

In what could possibly be the biggest upset in Apple supplier history, a new report has shed shocking detail about how Apple is trying to undermine one of its best friends.

Nikkei Asian Review reports today that Apple is trying to convince a supplier for AirPods, LuxshareICT to invest in metal cases for the iPhone and MacBook, with the ultimate intent of replacing Foxconn.

Apple has advised one of its Chinese AirPods assemblers to make a major investment in an iPhone and MacBook metal casing provider, a move the California tech titan hopes will create a formidable alternative to another of its longtime suppliers, Taiwan’s Foxconn, multiple sources told the Nikkei Asian Review.

LuxshareICT has been Apple’s assembler for the AirPods for some time and will help the company produce 3 to 4 million AirPods in Vietnam. Foxconn is the biggest electronics producer in the world and has been working with Apple since 2007. Nikkei says that LuxshareICT has been in negotiations with Taiwan’s Catcher Technology, a leading metal case provide in a possible partnership.

If a partnership does go through, it would pave a way for Apple to use LuxshareICT as a case provider for the iPhone, its most popular product instead of Foxconn. The report cites an anonymous source saying Apple is “keen” on moving from heavy reliance on Foxconn.

There could be some reasons why, the biggest rests simply with the companies response to COVID19. Apple has been under more pressure to shift production away from China. It’s more recently was reported that it plans a massive transition into India, possibly moving some production of chips into the United States, and has already been producing the iPhone XR in India.

Default image
Sami
Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.