Luxshare set to thrive with new production line, Foxconn's fate uncertain: analyst

Renowned tech analyst Ming-Chi Kuo has revealed that Apple, the prominent US iPhone manufacturer, is poised to assist Luxshare in establishing a production line in India.

Accordingly, Luxshare stands to gain immensely from the burgeoning Indian market and its expanding supply chain in the years to come, Kuo said.

Kuo also divulged that Luxshare had obtained the coveted new production introduction (NPI) for the upscale iPhone 16 model (Pro Max), whereas Foxconn has been left empty-handed.

NPI is a planning process to commercialise a product from its initial idea to being ready for mass production. The ordering company needs to send the NPI to the partner as early as possible to ensure that the production schedule and release plans are met on time.

According to Kuo, Apple is expected to engage in negotiations with the Indian government, exploring avenues such as a joint venture to facilitate Luxshare's foray into Indian production lines.

Luxshare, founded by a former employee of Foxconn, has been operational in Vietnam since 2017, expanding its investments from then until the present. The company's factories are located in two provinces, Bac Giang (comprising four factories) and Nghe An (housing two factories), focusing on component production and assembly for three sectors, including automotive, consumer electronics, and IT.

Luxshare Vietnam currently employs over 45,000 workers, including 2,000 foreign experts. The company has invested over $600 million in Vietnam, and its disclosed revenue for 2021 exceeded $6.5 billion.

Kuo, a Taiwanese analyst at TF International Securities, is widely known for his expertise and predictions regarding technological trends.

In 2020, Luxshare, previously an AirPod supplier, entered the realm of iPhone assembly by acquiring two iPhone assembly plants from Wistron in China. This marked the first time that Foxconn had failed to secure the highest-level iPhone assembly NPI.

Kuo predicts that Luxshare's iPhone business will experience substantial profit growth starting from the second half of 2023.

Meanwhile, in an effort to enhance operations in emerging markets, Apple announced its inaugural online store in Vietnam on May 18. The online store will be staffed with a dedicated team of Vietnamese-speaking experts, readily available to provide customers with specialised assistance and guidance.

Foxconn plans to pour additional $300 million into a new factory in Vietnam Taiwan-based Hon Hai Precision Industry, better known as Foxconn, plans to lease 50.5 hectares of land in Quang Chau Industrial Park in the northern province of Bac Giang to develop a new project with an investment of $300 million.

Luxshare ICT invests additional $150 million in Nghe An The central province of Nghe An on October 28 agreed on the investment planning for two foreign-invested projects worth $275 million, including one by Luxshare ICT.

Apple to launch first online store to tap into Vietnam's tech-savvy population Apple has a plan to open its first online store in Vietnam, as the iPhone maker is seeking growth from the younger, mobile-first population.