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Luxshare says client cooperation normal after Apple production cut report

Published 05/01/2023, 01:05 pm
Updated 05/01/2023, 01:10 pm
© Reuters. FILE PHOTO: Man walks past an Apple store in Taipei, Taiwan October 20, 2020. Picture taken October 20, 2020. REUTERS/Ann Wang
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SHANGHAI (Reuters) - China's Luxshare Precision Industry Co Ltd said on Thursday its cooperation with current clients was normal, in response to a media report that iPhone maker Apple Inc (NASDAQ:AAPL) had asked suppliers to cut production.

The electronics manufacturer said it wanted to clarify a recent report from a Taiwanese media outlet which said that Luxshare had suffered the biggest impact from the Apple request.

"There are no special changes or impact to the relevant business of the company mentioned in the report," Luxshare said in its statement.

"Currently the company's cooperation with existing customers is progressing normally and the business is moving forward in an orderly manner according to the work plan."

Luxshare makes connector cables for the iPhone and Macbook to manufacturing AirPods and also owns factories capable of making iPhones.

A report by Nikkei Asia on Monday citing unnamed suppliers said Apple has told suppliers to manufacture fewer components for its ear buds, watches and laptops as a sluggish global economy and high inflation may be hurting demand for Apple devices.

© Reuters. FILE PHOTO: Man walks past an Apple store in Taipei, Taiwan October 20, 2020. Picture taken October 20, 2020. REUTERS/Ann Wang

Another supplier, Suzhou Dongshan Precision Manufacturing, which makes printed circuit boards for Apple, said on Thursday in response to a query about the same media reports on its investor Q&A platform that the orders of its core customers were stable. It did not name Apple.

A separate report by the Financial Times on Thursday said Apple is set to sign an order with Luxshare to produce premium iPhone models. Foxconn declined to comment. Apple and Luxshare did not immediately respond to requests for comment.

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