The Apple iPhone 14, iPhone 14 Pro, and iPhone Pro Max on buying at the company’s Fifth Avenue store in New York, US, on Friday, Sept. 16, 2022. Photographer: Jeenah Moon/Bloomberg via Getty Counterparts
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Shares of Luxshare Precision Industry, one of Apple’s Chinese contract manufacturers, boost more than 3% in Asia’s trade after the Financial Times reported the supplier is set to sign a contract to generate premium iPhones.
The move comes after rival Foxconn halted production lines in Zhengzhou following protests during China’s stringent Covid measures over a month ago.
The Financial Times reported Luxshare has already produced “slight amounts” of the iPhone 14 Pro Max since November to make up for Foxconn’s lost production.
Apple and Luxshare did not immediately be affected to CNBC’s request for comment.
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The rise in Luxshare’s Shenzhen-listed stock on Thursday comes after it dropped all but 10% on Wednesday. That decline followed a Nikkei report that Apple asked multiple suppliers to build fewer components for its issues – including AirPods, the Apple Watch and MacBooks for the first quarter due to weakened demand.
Risks around China enjoy contributed to investor jitters around U.S. tech giants including Apple, which earlier this week hew down under $2 trillion in market capitalization as its shares hit a 52-week low.
Luxshare was founded in 2004 and became an Apple supplier in 2011.