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Apple bet on an obscure Chinese manufacturer for the Vision Pro because of its willingness to test 'crazy' ideas, report says

Jul 31, 2023, 18:15 IST
Business Insider
Apple's Vision Pro headset is due for launch in 2024.Apple
  • Apple chose a Chinese firm to assemble its Vision Pro thanks to its openness to "crazy ideas."
  • Shenzhen's Luxshare is the sole assembler of the mixed reality headset, per the Financial Times.
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A Chinese firm responsible for assembling Apple's Vision Pro had a vote of confidence from the tech giant thanks to its willingness to test "crazy" ideas, a new report says.

Luxshare, a contract manufacturer, has built close ties with Apple as the latter prepares to launch its mixed-reality headset. The Shenzhen-based firm has won "favor and increasing business" from the iPhone maker as it assembles the new hardware, the Financial Times reported.

The report doesn't detail what crazy ideas Luxshare has been willing to test, but notes that the manufacturer has been winning more complex projects from Apple over the years thanks to its ingenuity.

The Vision Pro is Apple's biggest hardware launch since the release of the iPhone in 2007 and set to be its riskiest in recent years. Consumers have yet to show mass enthusiasm for virtual-reality and mixed-reality headsets, and the device comes in an at eye-watering $3,500. The company unveiled the headset at its annual developer conference in June, and the device is set to launch in early 2024.

Apple is solely relying on China's Luxshare to assemble the headset, putting heavy responsibility on the company's shoulders. Luxshare, which became publicly listed in 2010, has had a supplier relationship with Apple since 2011.

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Analysts told the Financial Times that Luxshare had come a long way to now be responsible for assembling "the most complex consumer device anyone has ever made."

The complexity of the device, which has been seven years in the making, has proven to be a serious challenge.

A report emerged earlier this month suggesting Apple would struggle to hit its target of 1 million shipments in 2024 as challenges emerged in the development of the headset's micro-OLED screens, forcing the firm to revise down production forecasts to fewer than 400,000 units next year.

Developers wanting to build apps for the headset received a lengthy list of terms and conditions in an agreement they must sign before receiving a unit ahead of wider release.

One term asks that developers "never" leave their pre-release unit unattended, and demands that they store the unit in a "locked Pelican case" when it is not in use.

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Apple and Luxshare did not immediately respond to Insider' request for comment outside regular working hours.

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