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Apple Shifts to Affordable MR Device with Foxconn as Potential Manufacturer

New budget-friendly MR device to launch next year, integrating AI to drive sales
Taiwan
f 2317.TW Blue Chip 150 OM 60 Tech 350
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Apple is shifting its mixed reality (MR) device strategy by discontinuing the development of its high-end Vision Pro headset to launch a more affordable MR device next year. According to Economic Daily News, Foxconn is likely to replace Luxshare as the manufacturer for this new device, though Foxconn typically refrains from commenting on specific orders or client relationships.

The new strategy includes integrating AI capabilities into the product, which is expected to significantly boost sales. Sources are optimistic that companies like Genius Electronic Optical (GSEO) and GIS Industries will benefit from these developments.

Initially, Apple planned to release two versions of the Vision device, akin to the standard and Pro versions of the iPhone. However, Apple has informed at least one supplier to halt the development of the next-generation high-end Vision Pro headset.

Recently, Apple planned to launch the USD 3,500 Vision Pro in eight new markets, including China and Japan. The Information reported that after Apple’s forecast of weakened demand, a supplier cut production by half in May. This suggests Apple expects to produce around 500,000 units this year.

Apple began developing a more affordable version of the Vision product in 2022, codenamed “N109.” This budget version aims to be at least one-third lighter than the Vision Pro. Foxconn is expected to manufacture this device.

Apple announced Apple Intelligence, confirming AI integration in future devices. The next generation of MR devices, featuring AI functions and a more affordable price, is expected to boost demand and increase shipment volumes, benefiting Foxconn.

GSEO and GIS are also set to gain, with GSEO providing lenses and components for VR/MR headsets and GIS handling lens bonding tasks for the Vision Pro. Both companies are likely to be part of the supply chain for Apple’s new MR headset.

 

 

 

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