By Li Panpan

Chinese electronics device maker Luxshare Precision has denied a media report claiming Apple reduced its orders and it has been enlisted by Apple to produce its premium iPhone models, reported JW Insights.

Shenzhen-based Luxshare said in a statement on January 5, “In order to avoid misleading media reports affecting investors, we clarify that Luxshare’s cooperation with its clients is normal and the business is progressing in an orderly manner, according to the working plan.” There are no notable changes to the company’s businesses mentioned in the report, it added.

Nikkei Asia reported on January 2 that Apple notified several suppliers, including Luxshare, to produce fewer AirPods, Apple Watches, and MacBooks in the first quarter because of the weakening consumer demand.

Shares of Luxshare were trading up 2% apiece as of noon on January 5, after plunging by the 10% exchange-imposed limit in the previous day.

Financial Times reported on January 5 that Apple is expected to enlist Luxshare to produce its premium iPhone models, breaking Foxconn’s hold on production.

Luxshare has already been producing small amounts of the iPhone 14 Pro Max at its plant in Kunshan, a city north-west of Shanghai, to compensate for lost production at Foxconn since November last year, said the FT report.

Luxshare was able to produce the high-end phone this year because of significant investment from Apple, said employees and experts.

“With Apple’s dedicated investment, including increasing staffing in supply chain management, it only took Luxshare a few months to deliver the last-minute orders,” said an Apple employee in China. The employee said it usually took Foxconn six months to revamp production lines for new iPhone models, said the FT report.