The Cupertino-based tech firm Apple is heading back to Chinese suppliers for the components of its upcoming mixed reality (MR) headset. Reportedly, Chinese suppliers will provide almost 60% of the components for the Vision Pro. Well, it is huge compared to the iPhone 15 series. The mass production is expected to begin in December. Apple wants to sell one million devices in 2024, with a target of ten million in the third year. This is an ambitious goal.
On the other hand, this is a significant divergence from past patterns in iPhone production, with 60% of components sourced from China. It is expected that the hardware of the Apple Vision Pro will cost around $1,700. One of the notable suppliers in China, Lingyi Intelligent Manufacturing, will provide components like headbands, eye masks, nose pads, and heat sink modules within the price range of $250-300. Whereas the components that will be used with the OEM assembly will be provided by Lixun Precision. These components fall within the price range of $150-200 per unit.
It is evident that Apple is turning back to China. In the past, there were several reports that indicated that the company would rely less on China in an effort to diversify its supply chain. The augmented participation of Chinese vendors, specifically with the Vision Pro, stands in stark contrast to the meager 2% of supply chain equipment procured for the iPhone 15 series. Throughout the development phase of the Vision Pro, Chinese suppliers extended their support and flexibility. Tim Cook, the CEO of Apple, has openly stated that he prefers mainland supply channels and that these chains are increasingly involved in cutting-edge devices like the Vision Pro.
Although the percentage of parts imported from mainland China for Apple’s iPhone production has decreased, the Vision Pro indicates a deliberate shift in the supply chain to China. Apple stands to gain from this move as it will cut production expenses and possibly allow the MR maker to lower the final product’s cost as a whole.
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