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Apple Reportedly Axes Mixed-Reality Headset's Exclusive Manufacturing Partner

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Taiwanese electronics manufacturer Pegatron, which was believed to be the exclusive partner for assembly of Apple's mixed-reality headset, has been removed from the device's supply chain, DigiTimes reports.

apple headset underside render by marcus kaneApple headset concept render by Marcus Kane.

The paywalled report explains that Apple requested Pegatron to hand over manufacturing and final assembly operations to Chinese supplier Luxshare. This process apparently finished in March. ‌DigiTimes‌ suggests that the change may be related to Pegatron moving some of its production capacity from China to other regions, which includes selling its factory in Shanghai to Luxshare.

Pegatron designed the production process for the headset that has now been handed-off to Luxshare, but the company may not see the loss negatively since manufacturing for Apple requires large volume to maintain profit margins. Since Apple's headset is expected to be manufactured in low volume as both the software and hardware have yet to mature and it is an unproven market, it may be initially unprofitable for suppliers, who have pinned their hopes on the long-term potential of headset devices.

Luxshare's takeover marks the first time a Chinese company will be solely responsible for the manufacture and assembly of a new Apple product at launch. To date, Apple device manufacturing has first been developed and undertaken by companies in Taiwan before gradually handing off to Chinese firms.

Luxshare already manufactures AirPods for Apple, alongside several iPhone and Apple Watch models. In the future, the company is also expected to help supply the iPhone 15 Pro Max, upcoming MacBooks, and even Apple's long-rumored electric vehicle.

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Tags: DigiTimes, Luxshare, Pegatron
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Top Rated Comments

I
Ion-X
39 months ago
Between manufacturing problems, the $3000 price tag, and the lifelong virginity that wearing this would incur, I think I’ll pass!
Score: 37 Votes (Like | Disagree)
vertsix Avatar
vertsix
39 months ago
I got a little excited by reading "Apple Reportedly Axes Mixed-Reality Headset"

I was like, wow, sounds like Apple will be back to being more focused again without nonsense products.

Then, I kept reading...
Score: 31 Votes (Like | Disagree)
C
CarAnalogy
39 months ago

Between manufacturing problems, the $3000 price tag, and the lifelong virginity that wearing this would incur, I think I’ll pass!
If you’re still a virgin by the time you can afford a $3000 headset, the headset ain’t the problem.
Score: 20 Votes (Like | Disagree)
TheYayAreaLiving 🎗️ Avatar
TheYayAreaLiving 🎗️
39 months ago
Would be better if Apple just cancels this whole AR/VR headset, please.
Score: 16 Votes (Like | Disagree)
Leon Ze Professional Avatar
Leon Ze Professional
39 months ago

When ai makes every frame of whatever you’re looking at look like this, I will.

I want to walk around in that world more than I care about how I look in this one.
Ahhh the true Floyd masterpiece and to me one of the best lyrics written:

"Overhead the albatross
Hangs motionless upon the air
And deep beneath the rolling waves
In labyrinths of coral caves
The echo of a distant time
Comes willowing across the sand
And everything is green and submarine

And no one called us to the land
And no one knows the where's or why's
Something stirs and something tries
And starts to climb towards the light

Strangers passing in the street
By chance two separate glances meet
And I am you and what I see is me
And do I take you by the hand
And lead you through the land
And help me understand
The best I can

And no one calls us to move on
And no one forces down our eyes
No one speaks and no one tries
No one flies around the sun

Cloudless everyday you fall
Upon my waking eyes
Inviting and inciting me to rise
And through the window in the wall
Come streaming in on sunlight wings
A million bright ambassadors of morning

And no one sings me lullabies
And no one makes me close my eyes
So I throw the windows wide
And call to you across the sky"
Score: 14 Votes (Like | Disagree)
testcard Avatar
testcard
39 months ago
For once, I won’t be an early adopter.
Score: 14 Votes (Like | Disagree)
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