Luxshare has become the first mainland electronics contract manufacturer enlisted by Apple to build a ‘first-generation’ product, the Vision Pro. Six other mainland companies, including audio components maker Goertek, are part of Apple’s Vision Pro supply chain. — SCMP
Chinese electronics contract manufacturer Luxshare Precision Industry Co, a major supplier of AirPods for Apple that has also won iPhone 15 orders, emerged as the assembler of the US tech giant’s new Vision Pro mixed-reality headset, according to the latest bill of materials (BOM) analysis by local consultancy Wellsenn XR.
That analysis showed seven mainland companies serve as suppliers to Apple’s Vision Pro headset, which was launched last week as a “spatial computing” device that changes the way users interact with their favourite apps, capture images, enjoy television shows and films, and connect with others via FaceTime.
Apart from Luxshare, which is also known as Luxshare-ICT, the other major mainland suppliers for the Vision Pro include camera module maker Cowell E Holdings and Shenzhen Desay Battery Technology, which provides lithium batteries and power management systems, according to Wellsenn XR, which tracks the augmented reality (AR) and virtual reality (VR) sectors in China.
The participation of Luxshare and the other mainland Chinese firms in producing the Vision Pro headset reflects Apple’s fresh vote of confidence in the country’s vast electronics manufacturing supply network, despite geopolitical and economic developments that could potentially speed up global supply chain realignments.
Taiwanese companies, however, still accounted for most of the suppliers involved in the production of Apple’s Vision Pro headset.
There were 11 Taiwanese suppliers involved with the Vision Pro, including plastic aspherical lens and optical components maker Largan Precision Co, optical lens products provider Genius Electronic Optical Co, touch display technology specialist GIS-KY and contract chip maker Taiwan Semiconductor Manufacturing Co, according to a report by Taiwanese financial newspaper Commercial Times, which cited research data from Morgan Stanley.
Mainland Chinese and Taiwan-based firms made up more than half of the total number of suppliers involved in the Vision Pro’s production, which also included South Korean companies Samsung Electronics and LG Electronics and Japan’s Sony Corp.
“It is evident that Vision Pro’s current suppliers, similar to the structure [of companies] behind the iPhone, are among the world’s top consumer electronics component providers,” said Ivan Lam, a senior analyst at tech research firm and consultancy Counterpoint.
“When Apple releases a lower-priced AR/VR product in the near future, the supply chain structure is likely to be quite similar to the current one,” Lam said.
Wellsenn XR’s analysis, meanwhile, also found that the estimated BOM cost of all components and materials used in the production of the Vision Pro headset totalled US$1,590, which is about less than half of the device’s US$3,499 retail price.
The following companies make up Apple’s mainland Chinese suppliers for the Vision Pro headset:
Luxshare – Based in southern tech hub Shenzhen, Luxshare has steadily climbed the ranks of Apple’s suppliers over the past two decades to become the first mainland Chinese contract manufacturer enlisted by the US tech giant to build a “first-generation” product, the Vision Pro, according to Counterpoint’s Lam.
Cowell E Holdings – This Dongguan-based company, which counts Samsung, LG and Apple as clients, received a strategic investment from Luxshare in 2020 to help expand into the manufacture of smartphone camera lenses.
Goertek – Based in eastern Shandong province, this Chinese audio components maker has rebounded from last year’s suspended production of the AirPods 2 after being included as one of the select suppliers for the Vision Pro headset.
Desay Battery – Founded almost 40 years ago, this Shenzhen-based firm supplies lithium batteries for various mobile device companies including Apple and Huawei Technologies Co. It entered Apple’s supply chain after the US tech giant moved to lower production costs by switching to mainland battery suppliers.
Shenzhen Zhaowei Machinery & Electronics Co – Established in 2001, Zhaowei supplies the VR-oriented electric focus drive system for the Vision Pro. This component automatically adjusts the headset’s lenses to ensure clear vision for users.
Shenzhen Everwin Precision Technology and Lingyi iTech Guangdong Co – MacBook chassis maker Everwin Precision and iPhone charger supplier Lingyi iTech were tapped by Apple to provide structural components, such as middle frame and casing, for the Vision Pro headset. – South China Morning Post
