Apple is turning to the supply chain in mainland China for its highly anticipated mixed reality (MR) headset, the Apple Vision Pro. Recent reports reveal that a substantial 60% of the components for the Vision Pro will be sourced from Chinese suppliers, indicating a significant increase compared to the iPhone 15 series. Set for mass production in December, Apple has set an ambitious sales target of 1 million units in 2024 and aims to reach 10 million units in the third year.
Sourcing 60% of components from China marks a notable departure from iPhone production trends
The estimated hardware cost of the Apple Vision Pro stands at around $1,700, with Lingyi Intelligent Manufacturing, a prominent Chinese supplier, playing a crucial role by providing components valued between $250-300. These components include heat sink modules, headbands, eye masks, and nose pads. Lixun Precision, another key supplier, will handle exclusive OEM assembly, contributing components valued at approximately $150-200 per unit.
This shift represents a departure from Apple’s recent endeavors to diversify its supply chain beyond China. The increased involvement of Chinese suppliers, particularly with the Vision Pro, contrasts sharply with the mere 2% supply chain equipment sourced for the iPhone 15 series.
Chinese supply chain companies have demonstrated remarkable flexibility and capabilities during the development and prototype stages of the Vision Pro headset, playing a pivotal role in winning Apple’s favor. Apple CEO Tim Cook has publicly expressed his preference for mainland supply chains, emphasizing their increased involvement in innovative products like the Vision Pro.
While Apple’s iPhone production witnessed a decline in the proportion of parts sourced from mainland China, the Vision Pro signals a strategic relocation of the supply chain to the country. This move is poised to benefit Apple by reducing production costs and potentially enabling the MR manufacturer to lower the overall cost of the end product.
Related:
- Apple Vision Pro to be Released in March 2024, But Won’t Be Available Globally Until 2025
- Leaked details reveal Apple’s second-gen Vision Pro headset, codenamed Project Alaska
- Apple silicon GPUs get even better with Parallel Processing improvements in M3 and A17 Pro
- Apple’s new patent will personalize the driving experience through advanced user recognition
- Apple reportedly working on a more affordable Vision Pro alternative
(Via)
