Founded in 2004, the China-based consumer electronics manufacturer Luxshare Precision has rapidly grown to become a key player in the global electronics supply chain.
The turning point for the company came in 2011, when Apple awarded Luxshare its first manufacturing contract. Over the next decade, the company progressively moved up Apple’s value chain. From initially supplying connector cables for the iPhone and Macbook to becoming the primary producer of the Apple AirPods.
Luxshare is arguably an indispensable contractor to Apple, having supplied 13% of Apple’s cost of goods sold in FY22.¹ Luxshare’s success is also intimately tied to its favor with Apple, having derived over 70% of its revenues from the tech giant over the last financial year.
During the last fiscal year, Luxshare’s relationship with Apple exceeded US$29billion, almost a tenfold increase since 2018.
In spite of this success, Luxshare’s rapid rate of expansion and profitability has been outpaced by its growth in operational emissions.
In the five-year period from 2018, Scope 1 and 2 emissions increased 568% whereas earnings rose 497%. GHG emissions intensity also deteriorated from 7.42 to 8.3 tonnes/millions in sales revenue.²
Luxshare has however taken some minor yet important steps forward. In 2022, the company announced it would achieve carbon neutrality by 2050. In May this year, Luxshare further committed to achieving 50% clean energy use by 2025.