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60% of Apple Vision Pro Components Supplied from China

Jakarta

Apple has turned to the supply chain in China for mixed reality (MR) headset devices, namely Apple Vision Pro. Recent reports reveal that 60% of critical components for the Vision Pro will be sourced from suppliers in China. This shows a significant improvement compared to the iPhone 15 series.

Set for mass production in December, Apple has set an ambitious sales target of 1 million units by 2024 and aims to reach 10 million units in the third year

The estimated hardware cost of the Apple Vision Pro is around USD 1,700, with Lingyi Intelligent Manufacturing, a leading supplier from China, playing a key role by providing components worth between USD 250-300. These components include cooling modules, headbands, eye masks and nose pads.

Lixun Precision, another major supplier, will handle exclusive OEM assembly, donating components worth approximately USD 150-200 per unit.

The shift is a departure from Apple’s recent efforts to diversify its supply chain outside of China. The increased involvement of Chinese suppliers, especially with the Vision Pro, stands in stark contrast to just 2% of supply chain equipment sourced for the iPhone 15 series.

The Chinese supply chain company has demonstrated great flexibility and capabilities during the development and prototyping stages of the Vision Pro headset, which played a crucial role in winning Apple’s favor.

Apple CEO Tim Cook has publicly stated his preference for supply chains from China, emphasizing their increasing involvement in innovative products such as the Vision Pro.

While Apple’s iPhone production has seen a decline in the proportion of parts sourced from mainland China, the Vision Pro marks a strategic relocation of the supply chain to the country.

This move would benefit Apple by reducing production costs and potentially allowing MR manufacturers to lower the overall cost of the final product.

Watch VideoGet to know the combination of the M2 and R1 chipset on the Apple Vision Pro

(jsn/fyk)

2023-12-03 02:18:51
#Apple #Vision #Pro #Components #Supplied #China

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