KGI Securities analyst Kuo Ming-chi (郭明錤) noted in a report that Apple’s AirPod orders will double next year to 26-28 million units, with a mainland Chinese firm taking the lead in assembly, Apple Daily reported.
A-Share company Luxshare Precision Industry Co. is expected to be the major assembler for AirPods next year, surpassing the orders from Taiwan’s Inventec. Taiwan-based HLJ Technology supplies AirPod vertical-cavity surface-emitting lasers (VCSEL).
According to Kuo, Apple is committed to improving assembly efficiency to meet demand for AirPods, which are delivered in 1 to 3 days, according to Apple’s official website. To meet that demand, Apple needed Luxshare to increase assembly capacity.
In June 2016, Luxshare was denied approval to invest in Taiwan’s Merry Electronics, a supplier of acoustics components for Apple. The company had sought a 25.4% stake in Merry worth US$117 million. Luxshare, however, took an alternate route a month later to invest in Merry’s manufacturing subsidiary in Suzhou for US$90 million. Luxshare should benefit from its partnership with Merry as a supplier for acoustic components for the AirPods as well as iPhones.