Apple has turned to China for the supply chain of its highly anticipated, upcoming MR Vision Pro headset.
Reports suggest 60% of the components will be sourced from Chinese suppliers, which is a significant increase compared with iPhone 15 series.
Mass production is set for December, with the company setting a sales target of 1 million units for 2024, aiming to reach 10 million units in the third year.
Estimated hardware cost stands at about $1,700, with Lingyi Intelligent Manufacturing, a Chinese supplier, playing a crucial role in providing components valued between $250 and $300.
Components include heat sink modules, headbands, nose pads, and eye masks. Another key supplier is Lixun Precision, which will look after the OEM assembly exclusively, and contribute components valued between $150 and $200.
This shift showcases Apple’s departure from recent endeavours, attempting to diversify the supply chain beyond China. The increased Chinese supplier involvement contrasts with the 2% supply chain equipment that was sourced for the iPhone 15 series.
During development and prototype stages of the Vision Pro, Chinese supply chain companies demonstrated flexibility and capability, playing a pivotal role in winning the favour of Apple.
CEO Tim Cook publicly expressed preference for mainland supply chains, and emphasised increased involvement.
Apple’s iPhone production has seen a decline in the proportion of parts sourced from mainland China, however, the Vision Pro showcases a relocation of the supply chain to the country.
The move has been poised to benefit Apple and reduce costs of production, as well as possibly enabling the manufacturer to lower overall cost of the end product.
