Apple adds more companies to iPhone 13 supply chain in anticipation of strong demand - PhoneArena

Apple adds more companies to iPhone 13 supply chain in anticipation of strong demand

Apple adds more companies to iPhone 13 supply chain in anticipation of strong demand
iPhone 13 Pro dummy units

The iPhone 13 series should add another year to the ongoing upgrade supercycle, and demand is expected to be so high that Apple has started asking extra suppliers to come on board and manufacture devices.

Apple has asked a third supplier to manufacture the iPhone 13

Nikkei Asia is reporting that Apple recently asked Luxshare Precision Industry to manufacture up to 3% of total iPhone 13 orders, with the remaining share being split between Foxconn and Pegatron.

Luxshare has worked with Apple for several years now, primarily handling AirPods orders. But it has never manufactured an iPhone before, so this latest development is a big win that could open more doors in the long run.

The supplier has reportedly been tasked with manufacturing the iPhone 13 Pro. Production is set to commence as soon as this month in preparation for an official announcement and release in September.

In addition to that, two Luxshare subsidiaries are involved in the supply chain. South Korea’s Cowell has been asked to supply camera modules and Taiwan’s Casetek will provide metal frames for the iPhone 13 series.

For reference, Apple is aiming to produce between 90 million and 95 million iPhone units by the end of this year. That’s 20% higher than the typical 75 million order, suggesting the company is on track to post a record holiday quarter.

In response to the Luxshare news, a senior executive at a rival iPhone supplier said: "Although Luxshare only makes a small percentage of iPhones this year, we can't let our guard down. If we don't strengthen our competitiveness, sooner or later they will be the major source."

BOE could start manufacturing OLED displays for the iPhone 13

Apple’s list of iPhone 13 suppliers goes beyond Luxshare and its subsidiaries. China’s Lens Technology has typically provided glass backs and cover glass, but with the iPhone 13 it’ll also be manufacturing metal casings.

Another Chinese supplier, Sunny Optical, has been added to the iPhone supply chain for the first time. It’ll oversee manufacturing of a small percentage of rear camera lenses, according to people familiar with the matter.

The bulk of rear camera lenses will still be supplied by Largan Precision, a Taiwan-based supplier that Apple has worked with for years. Nevertheless, the use of extra partners could give Apple additional leverage when it comes to negotiations.

As for the all-important displays, Apple has typically relied on three companies: Samsung Display, LG Display, and Japan Display. Chinese company BOE joined the list last year when it started manufacturing panels for older models.

Nikkei Asia claims that BOE could start supplying OLED displays for the iPhone 13 series as soon as next quarter. But that depends on receiving approval from Apple, which has so far been reluctant to use BOE displays on its latest devices.

People familiar with the matter say Apple is keen to add BOE to its list of suppliers so that it has more bargaining power with Samsung, historically Apple’s main supplier of OLED panels.

Updates displays and cameras will be central to the iPhone 13

For those of you that aren’t aware, the iPhone 13 and iPhone 13 Pro models are expected to offer an iPhone 12-like design with a smaller notch and updated rear camera modules.

Sensor-shift stabilization is currently exclusive to the iPhone 12 Pro Max, but with the iPhone 13 line it’ll be made standard across all models. Apple is also expected to upgrade the sensors, with a focus on bigger ones capable of capturing more light.

Aside from the smaller notch, the displays on the vanilla iPhone 13 models should be the same as those found on the iPhone 12. However, the Pro-branded devices are likely to benefit from 120Hz ProMotion tech.

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