Amid Apple’s efforts to reduce its dependence on China, the tech giant finds itself increasingly reliant on a particular Chinese company and its CEO. Luxshare Precision, led by Grace Wang, has become a crucial manufacturer for several of Apple’s flagship products, including AirPods, the Apple Watch, and even the recently launched iPhone 15. Luxshare’s role in assembling Apple’s devices, including the upcoming mixed-reality headset, has underscored the challenges Apple faces in diversifying its production away from China, especially considering Wang’s expertise in meeting Apple’s stringent requirements.
Tim Cook’s recent visit to Luxshare’s facilities near Shanghai emphasized the company’s significant contribution to Apple’s production. Wang’s journey, intertwined with that of Foxconn Technology, signifies Luxshare’s emergence as a dominant player in Apple’s supply chain, gradually encroaching on Foxconn’s territory. Wang’s humble beginnings in a Foxconn factory and her subsequent rise, marked by strategic acquisitions, demonstrate her commitment to excellence and understanding of Apple’s intricate manufacturing demands.
Despite its successes, Luxshare’s heavy reliance on Apple has raised concerns among investors, given its narrow profit margins. Wang has emphasized the need for diversification and has already begun expanding the company’s footprint into electric vehicle parts manufacturing, aiming to work directly with prominent carmakers globally. Luxshare’s partnership with Apple continues to strengthen, with the company taking on critical roles previously monopolized by Foxconn, such as handling the introduction of new Apple products.
In a bid to diversify its manufacturing base, Luxshare is also investing in additional production capacity in Vietnam and India, with a goal to have 30% of its production in Vietnam, while maintaining a significant presence in China. Furthermore, Luxshare is gearing up to assemble an advanced version of Apple’s virtual-reality headset, slated for potential mass production in 2027, showcasing the company’s continued involvement in Apple’s innovative ventures.