Benzinga | Aug 4, 2021 01:46PM EDT

Apple Enlists More Asian Suppliers to Ramp Up iPhone 13 Production as Launch Schedule Looms: Report

Apple Inc (NASDAQ:APPL) is leaving no stone unturned, as the speculated launch schedule of the company's new iPhone iteration draws close.

What Happened: Apple has contracted Chinese electronics company Luxshare Precision Industry to make about 3% of the iPhone 13 models, the Nikkei reported.

Luxshare has gained at the expense of Apple's longtime Taiwan-based suppliers Hon Hai Precision Industry Co., Ltd. (OTC:HNHPF) -- also known as Foxconn -- and Pegatron, the report said.

Despite Luxshare not having experience with building iPhones, it is being vested with the responsibility of making the premium iPhone 13 Pro variant, the Nikkei said, citing sources.

Additionally, Luxshare's recently acquired companies Cowell, a maker of camera modules, and Casetek, a maker of metal frames, will also supply key components for the iPhone 13, the Nikkei said.

Apple is reportedly aiming to produce about 90 million to 95 million of iPhones through January.

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Why It's Important: The addition of Chinese companies to Apple's panel of suppliers comes at a time the U.S. is clamping down on Chinese chipmakers.

Apple's relationship with Luxshare could help increase Cupertino's bargaining power with its major supplier Foxconn, the Nikkei said, citing an analyst at Isaiah Research.

Wedbush analyst Daniel Ives expects the iPhone 13 to arrive in late September. The analyst said the new iPhone will include a number of enhancements, with Lidar across all models.

Reports also suggest Apple's chip suppliers Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM), Gensys Logic and Parade Technologies are working overtime to keep up with chip commitments for the iPhone 13.

At last check Wednesday, Apple shares were down 0.18% at $147.10.

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