Luxshare to Make First Generation Apple Headset, Foxconn Working on Cheaper Second Generation Model [Report]

Apple has reportedly chosen China's Luxshare to produce its first generation mixed reality headset, according to Nikkei.

Luxshare's participation is a milestone for Chinese tech suppliers. In previous decades, Apple has relied on Taiwanese suppliers like Foxconn to help it develop the first generations of new product lines. Its decision to rely on a Chinese player like Luxshare comes amid heightened tech tensions between the U.S. and China, and scrutiny of Apple's own reliance on its supply chain in China.

Notably, the site says Apple initially started developing its first generation headset with Pegatron; however, after on and off collaboration over four years, the company allegedly became skeptical of Apple's plans and gradually exited the project.


As previously reported, Apple is also working on a cheaper second generation headset. That headset is being developed with Foxconn, Apple's main assembler.

Foxconn is also helping with the AR project, four people told Nikkei Asia. The longtime iPhone assembler will work on parallel development of a cheaper second-generation AR device, four sources said. Foxconn's focus will be on automating mass production and improving production performance to help Apple lower overall costs, according to two people familiar with the plans.

"Apple's first generation of AR devices will be extremely expensive, and really only can attract those passionate tech geeks or premium customers," an executive with knowledge of the development told Nikkei Asia. "But Apple hopes to push the price down in the second generation of devices, which is in parallel development, to a more affordable price, like a high-end Mac computer, and hopes to attract a bigger user base."

Apple has purportedly pushed back the unveiling of its mixed reality headset from April to June. It's now expected that the headset will be unveiled at WWDC 2023. The first generation model is rumored to feature a waist mounted battery, a digital crown, an H2 chip, and much more. Check out those details here.


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