Apple asks little known Chinese supplier to double AirPods Pro production

Less than a week ago, we told you that led by stronger demand than expected for Apple's AirPods Pro, shipments of the "earable" will double this year to 60 million units. That includes shipments of the first-generation AirPods, the second-generation AirPods that were introduced last March, and the new AirPods Pro launched last month. The "Pro" version of Apple's wireless Bluetooth earbuds offers active-noise cancellation when you want to shut out the outside world, and a Transparency mode when you need to hear what's going on around you.
The AirPods could eventually sell 200 million units a year says one analyst
Luxshare produces the AirPods Pro in two factories located in China. Since these units are imported into the states from China, they are subject to the tariffs imposed on such products by U.S. President Donald Trump. These tariffs are essentially an import tax that U.S. companies and consumers pay. Starting on December 15th, smartphones from China, including the iPhone, will be subject to the tariffs. However, exactly one week ago today the president suggested that he might exempt Apple from paying the tariffs on its products imported from China. Currently, that includes the AirPods originating from China, the Apple Watch, and more.
Luxshare is not as well known as some of Apple's other higher-profile contract manufacturers like Foxconn. But considering that Apple usually doesn't trust an expensive new high-end product like the AirPods Pro to a smaller Chinese company to assemble, one source said, "That means this supplier really is able to meet Apple's critical demands for quality and efficiency." Speaking of Foxconn, Luxshare was started by a former assembly line worker who was once employed by the company, Grace Wong. Now, Wong heads up a company that not only counts Apple as a customer but also does work for Huawei, Oppo, Vivo, and even Tesla. The company first did business with Apple back in 2012 as a component supplier and started assembling the original AirPods in 2017.
GF Securities analyst Jeff Pu says that he expects Apple to ship a whopping 80 million AirPods next year. That would be a 33% hike from the 60 million units expected to be delivered by Apple this year. Pu says that eventually, the AirPods could out ship the iPhone. "In the future, it (AirPods) could well sell at the level of the iPhone, with some 200 million units a year," the analyst said. Meanwhile, Wedbush analyst Daniel Ives predicts that consumers might find it hard to find the AirPods in stock during the holiday shopping season.