During Apple's fiscal Q3 financial conference call Tim Cook stated that "We continue to see phenomenal demand for AirPods." Today we're learning that the leading Apple AirPods manufacturer Luxshare Precision drew a series of analyst price upgrades after the Chinese assembler revealed a roughly 80% surge in first-half profit from sales.

Luxshare is among the largest of a crop of Chinese manufacturers of consumer electronics. The Shenzhen-based firm has in the past years become a primary supplier of AirPods, one of the fastest-selling consumer accessories in the market.

Csc International analyst Zhu Jixiang stated for the report that "Luxshare is in a fast-growth phase thanks to its comprehensive product lines and expertise in R&D and production of precision electronic components, which provide a defensive moat. Apple’s AirPods in particular are a bright spot in the market, and Luxshare has a significant share of assembling that product."

Trump-administration tariffs on Chinese-made products, including eventually a swath of consumer and mobile electronics, will pressure contract manufacturers’ margins and accelerate a costly shift of capacity away from China over time.

An economic downturn could also depress demand for electronics more generally. For more on this story, read the full Bloomberg report.

Back in October 2018 a rumor was reported that Apple AirPods supplier GoerTech was looking to move their AirPods Plant to Vietnam to avoid possible escalation of China-USA Trade war.

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