Recently, rumors have emerged regarding the poor quality of iPhone 16 cases produced by Red Supply Chain manufacturers. In response, Apple urgently sought support from Taiwanese suppliers, with Foxconn stepping in as a “rescue hero” to expand the supply of high-end iPhone 16 Pro and iPhone 16 Pro Max cases.

When asked about these claims, Foxconn typically refrains from commenting on individual customers or products. Industry analysts note that Foxconn enjoys significant advantages in vertical integration when it comes to product manufacturing, and the increase in iPhone 16 case orders could bolter its share in overall assembly contracts.

Historically, iPhone cases have been primarily supplied by Taiwanese companies such as Catcher, Foxconn’s subsidiary Foxconn Precision, and Pegatron’s subsidiary Bando, as well as Jabil. However, in recent years, Catcher, Bando, and Jabil have gradually exited the iPhone case supply chain, paving the way for Chinese companies to enhance their presence in this sector.

For instance, in August 2020, Catcher announced the sale of its factory in Taizhou, Jiangsu Province, China, to Chinese glass manufacturer Lens Technology. This facility accounted for approximately 40% of Catcher’s revenue, and its exit from the iPhone supply chain sent shockwaves through the industry, allowing Lens to emerge as a major player in the Red Supply Chain.

Following Catcher’s exit, in January 2021, Luxshare, a key manufacturer within the Red Supply Chain, invested 6 billion RMB (around 850 million USD) to acquire a stake in Bando’s subsidiary, Richtech. This acquisition gave Luxshare a 50.1% share, positioning the company to complete the crucial component puzzle in the iPhone supply chain.

In December 2023, BYD Electronics announced the successful acquisition of Jabil’s mobile electronic manufacturing business, which involved a transaction worth approximately 2.01 billion USD.

These transactions have shifted the landscape of iPhone case suppliers from the original trio of Foxconn, Catcher, and Bando to a new quartet that includes Foxconn, BYD, Lens, and Luxshare. The rise of the Red Supply Chain has brought advantages such as competitive pricing and heightened vertical integration, creating speculation that it could threaten the dominant position of Foxconn in iPhone assembly and components. Nevertheless, several years later, Foxconn remains the largest supplier for iPhones, especially in the high-end market, and continues to enjoy strong quality recognition from major clients.

According to supply chain insiders, the recent quality issues encountered by Chinese iPhone case manufacturers prompted Apple to urgently seek Foxconn’s assistance. The suspected reasons for the quality shortcomings may relate to the integration challenges of the recently acquired factories, suggesting that both sides are still in the process of harmonizing operations.