New reports have revealed that US tech giant Apple is working to solve a contentious issue linked to future versions of its upcoming Vision Pro mixed reality (MR) headset.
Due to production and materials expenses, leading to a $3,500 price tag, the Cupertino-based company is now turning to cheaper components to offset the lofty price tag in subsequent versions of the device.
The Information reported on Tuesday that Apple aimed to evaluate two potential suppliers—SeeYA Technology and Best on Earth (BOE) Technology—as providers of the headset’s microOLED displays.
New from @waynema: Apple is testing displays made by two Chinese firms for possible use in future Vision Pro devices, as Chinese firms play a bigger role in high-end tech. https://t.co/T7TQr3tOhm
— The Information (@theinformation) August 29, 2023
Citing sources familiar with the matter, the report claims that Apple was “testing advanced displays” from the companies, with the future for “possible inclusion in future models” of the Vision Pro headset.
According to one of the sources, a non-Pro iteration of the Vision device, codenamed N109, could become the cheaper alternative to Apple’s $3,500 enterprise-grade headset.
The headset is in the early stages of development and is set for release in early 2024, according to global media.
Crunch Time for Apple’s Vision Pro 2024 Debut
Sony supplies Apple’s Vision Pro microOLED displays, but cannot produce more than one million units, despite each head-mounted display (HMD) requiring two to function.
To scale up its pricing and supply requirements, Apple will need to test the microdisplays to meet its rigorously for its “stringent quality-control standards and tech specifications,” it explained.
It will also include additional suppliers to boost production output, allowing the company to lower the production costs for the device in the future.
The trillion-dollar enterprise has traditionally used BOE for its iPhone, MacBook, and iPad displays. However, SeeYa is a major Chinese firm set to produce significant units of microOLED display for the nation.
‘Limited Vision’ in the Road Ahead for Apple’s Headset Debut
In reports in early July, Apple began slashing its Vision Pro production, leading to much lower forecasted manufacturing throughput than expected.
According to the findings, Luxshare Precision Industry Co, Apple’s Chinese manufacturing partner, limited its unit production to roughly 400,000 units. This is less than half of Apple’s expected one million units.
Additionally, Apple has requested sufficient microOLED components to build up to 150,000 headsets.
Contentious issues linked to Sony and TSMC have forced the US tech behemoth to confront “difficulties” in its production of microOLED and outward-facing lenses, the report added.
This has led to material costs for each Vision Pro unit skyrocketing to around $1,590 USD of the total $3,500 price tag. Apple has begun working with Luxshare and eleven Taiwanese partners in its supply chain.
Luxshare and Apple recently unveiled a strategic supplier partnership for a future AR smart glasses product for the latter firm. This took place after dropping Pegatron and selecting Luxshare in April due to costs and productivity capabilities.
Apple debuted its first-ever MR headset at the Worldwide Developers Conference (WWDC) 2023 on 5 June after several major delays of the product.
