The new iPhone 14 series is the highlight of the consumer electronics industry in the second half of this year, and apple has begun preliminary preparations.
According to Taiwan Economic Daily reported that Apple iPhone 14 recently entered the OEM trial production operation, and Luxshare Precision Industry Co.Ltd(002475) received the assembly order of the basic iPhone 14, becoming the second largest apple mobile phone assembly plant after Hon Hai. however, Luxshare Precision Industry Co.Ltd(002475) has not obtained a new product trial production import mass production service order (NPI), and will not be able to contract the high-end iPhone 14, that is, the iPhone 14 Pro Series.
It is understood that Apple usually sends trial production orders for new mobile phone products to the OEM in the middle and late February of each year, that is, apple introduces this year’s new product plan to the OEM, and the OEM prepares for OEM accordingly, such as purchasing raw materials and opening production lines. After the trial production is successful, NPI can enter the mass production link. Therefore, NPI can be regarded as the early stage of receiving orders and entering mass production.
Lixun has become the second largest assembly plant of iPhone
In the past, iPhone assembly orders were distributed by three Taiwan factories, including Hon Hai, Heshuo and Wistron, with Hon Hai accounting for the largest proportion.
Last year, Luxshare Precision Industry Co.Ltd(002475) won the iPhone assembly order for the first time and won the high-level iPhone 13 Pro assembly order for the first time. Hon Hai held about 75% of the OEM volume of iPhone 13 last year, and Hon Hai still monopolized the assembly order of high-end 6.7-inch iPhone 13 Pro max. industry insiders had expected that Luxshare Precision Industry Co.Ltd(002475) is expected to overtake Heshuo in 2023 and become the second largest assembly plant of iPhone.
According to Taiwan media sources, the supply chain revealed that after joining the ranks of iPhone OEM, Tencent assembled about 6.5 million iPhones last year and actively expanded, hoping to obtain more iPhone OEM orders. According to previous reports by Nikkei news, Luxshare Precision Industry Co.Ltd(002475) is building a large manufacturing park in Kunshan City, Jiangsu Province, with a total investment of 11 billion yuan, covering an area equivalent to 40 football fields. It can increase the assembly volume of iPhones to 12-15 million as soon as this year, and finally set up 39 production lines.
Apple’s mobile phone shipments are strong, and local suppliers may welcome incremental space
The iPhone has always been the absolute king of the smartphone market. According to canalys, a research firm, Apple’s mobile phones accounted for 22% of global smartphone shipments in the fourth quarter of 2021, ranking first in the global smartphone market.
At the same time, a number of securities companies released research reports. It is expected that Apple will release the “cheap version” iPhone se 5g mobile phone in the spring (or around March 8), with a price of 2500 yuan, which is expected to open the medium and low-end market for apple, consolidate its global market share and further value the performance of core suppliers in the fruit chain.
Chu Xiong, an analyst at Galaxy Securities, predicts that iPhone shipments are expected to reach 245 million in 2022.
In addition to Luxshare Precision Industry Co.Ltd(002475) , other local manufacturers cutting into Apple’s supply chain are also expected to usher in more incremental space. According to Apple’s official supplier list in 2020, and the regional perspective, has the largest number of new enterprises in Chinese mainland and plays a more and more important role in Apple’s supply chain.
These include BOE, which supplies OLED panels for iPhone, and Avary Holding (Shenzhen) Co.Limited(002938) , Lingyi Itech (Guangdong) Company(002600) , Shenzhen Desay Battery Technology Co.Ltd(000049) , Lens Technology Co.Ltd(300433) , Shenzhen Sunway Communication Co.Ltd(300136) where iPhone business accounts for a high proportion of revenue.
