Ten years into Apple

Ten years into Apple, Luxshare Precision’s high-growth era ends

Recently, According to Unshared News:  Apple Industry chain giant Luxshare Precision released its mid-year financial report, showing its revenue for the first half of the year was 48.147 billion yuan, a year-on-year increase of 32.08%;

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It is hard to imagine that this Dongguan electronics factory, which provided connectors for Apple a decade ago, has now grown into a consumer electronics giant with annual revenue of 100 billion that accounts for more than half of Apple’s Airpods headsets.

Just at the beginning of August this year,

news in the industry chain stated that Luxshare Precision will manufacture iPhone 13 for Apple’s mobile phones for the first time, which is considered to be an important step in its impact on Foxconn, the world’s first-generation factory.

Since entering the Apple industry chain for the first time in 2011, Luxshare Precision has been stepping up to the top, and while the halo has increased, it has also faced new pressures. Along with this good report card in the first half of this year, voices such as “main business gross profit margin fell to 15.78%”, “increasing profits but not income”, and “making money but yelling but not making money” came one after another. The performance growth was in line with expectations, but it could not be reflected in the stock price.

Impact Foxconn?

Revenue was 48.147 billion yuan, a year-on-year increase of 32.08%; net profit was 3.089 billion yuan, a year-on-year increase of 21.73%. As a company with most of its markets abroad, Luxshare Precision has maintained steady growth under the raging global epidemic in 2021

Established in 2004, Luxshare Precision started as a connector/wire, and then gradually expanded its business to acoustics, motors, wireless charging, and other components, and then deployed smart wear, smart home, and smart display system assembly business, and Goertek Blue CiscoTechTone occupies an important position in the “Apple Industry Chain”. wikijoby

At the moment,

Luxshare Precision’s most profitable business is consumer electronics, reaching RMB 40.395 billion, accounting for 84% of total revenue. Customers include Apple, Huawei, and Sony., MilletWait for the head manufacturers.

This business is not integrated and settled with the consumer electronics business, and the revenue of a single sector reached 2.779 billion yuan, accounting for nearly 6% of the total revenue. In addition, in the communications and interconnection sector, products mainly include high-speed cable assemblies, base station antennas, filters, optical modules, etc., which have entered the supply chain of Huawei and ZTE; automotive interconnection is a new area of Lixun ’s recent layout and has become DelphiAnd other auto manufacturers provide products such as connectors and electronic modules.

In the first half of the year, revenue reached 1.774 billion yuan, a year-on-year increase of 39%. the second half of 2020, accounting for 90%, most of which are Apple businesses. Standing desk Dubai

It is worth mentioning that recently,

with the release of the foundry iPhone 13 from Luxshare Precision, the voices of Luxshare Precision’s impact on Foxconn’s status as the world’s largest foundry have been one after another. In fact, in recent years,  yelling but not  as the market value of Luxshare Precision once broke through 400 billion yuan to catch up with Foxconn’s Hon Hai Precision, which is mainly responsible for Apple’s iPhone foundry., And revenue has easily increased by more than 70%, this kind of “yelling” has already appeared.

However, this may be more of what everyone expects from this company. Many people have heard of the entrepreneurial story of Wang Laichun, the founder of Luxshare Precision-Foxconn’s exodus of female workers, and the legend of the grassroots counterattack against the former owner is loved by many people.

In terms of actual revenue,

Foxconn’s 2020 revenue will reach US$191.3 billion, which is about 13 times that of Luxshare Precision (RMB 92.501 billion). From a business perspective, Foxconn occupies 70% of iPhone production. Even if it is merged into the acquired Wistron’s 5% share, there is still a large gap.

People think that Luxshare Precision’s impact on Foxconn is more optimistic about its future potential value.

“Apple” is not good to eat

Since 2011, Luxshare Precision has entered the Apple industry chain through components such as PC connectors and mobile phone charging cables.

2017 is a crucial year. In that year, Luxshare Precision’s high-growth Luxshare bet on the wireless true Bluetooth headset market official announce and officially entered revenue has increased the Apple Airpods assembly business; in 2019, Luxshare Precision had occupied 70% of the 13 for the first time.

We see that in 2020,

Lixin Precision’s largest customer, Apple, has sales of 63.84 billion yuan, accounting for nearly 70% of total revenue. In the second half of the year, with the new Watch and the first entry into the iPhone 13 business, Luxshare Precision is expected to achieve more growth than in the first half of the year.

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