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

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.

Related Roundup: Apple Vision Pro
Related Forum: Apple Vision Pro

Top Rated Comments

Ion-X Avatar
8 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
8 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)
CarAnalogy Avatar
8 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
8 months ago
Would be better if Apple just cancels this whole AR/VR headset, please.
Score: 16 Votes (Like | Disagree)
madmin Avatar
8 months ago
We are so excited to announce our new product the iSpy headset
Score: 14 Votes (Like | Disagree)
testcard Avatar
8 months ago
For once, I won’t be an early adopter.
Score: 14 Votes (Like | Disagree)

Popular Stories

apple card 1

Apple Ending Apple Card Partnership With Goldman Sachs

Tuesday November 28, 2023 3:09 pm PST by
Apple is ending its credit card partnership with Goldman Sachs, according to The Wall Street Journal. Apple plans to stop working with Goldman Sachs in the next 12 to 15 months, and it is not yet clear if Apple has established a new partnership for the Apple Card. Apple and Goldman Sachs will dissolve their entire consumer partnership, including the Apple Card and the Apple Savings account....
ios 17 namedrop

Police Departments and News Sites Spreading Misinformation About How iOS 17 NameDrop Feature Works

Monday November 27, 2023 5:11 pm PST by
Apple with iOS 17.1 and watchOS 10.1 introduced a new NameDrop feature that is designed to allow users to place Apple devices near one another to quickly exchange contact information. Sharing contact information is done with explicit user permission, but some news organizations and police departments have been spreading misinformation about how functions. As noted by The Washington Post,...
Apple Logo

Apple Discontinued These 5 Products This Year

Monday November 27, 2023 7:03 am PST by
As the end of 2023 nears, now is a good opportunity to look back at some of the devices and accessories that Apple discontinued throughout the year. Apple products discontinued in 2023 include the iPhone 13 mini, 13-inch MacBook Pro, MagSafe Battery Pack, MagSafe Duo Charger, and leather accessories. Also check out our lists of Apple products discontinued in 2022 and 2021. iPhone Mini ...
iOS 17

iOS 17.1.2 Update for iPhone Likely to Be Released This Week

Monday November 27, 2023 8:24 am PST by
Apple will likely release iOS 17.1.2 this week, based on mounting evidence of the software in our website's analytics logs in recent days. As a minor update, iOS 17.1.2 should be focused on bug fixes, but it's unclear exactly which issues might be addressed. Some users have continued to experience Wi-Fi issues on iOS 17.1.1, so perhaps iOS 17.1.2 will include the same fix for Wi-Fi...
iOS 17

Everything New in iOS 17.2 Beta 4

Tuesday November 28, 2023 12:18 pm PST by
Apple is wrapping up development on iOS 17.2, with the update expected to come out in December. While we're getting to the end of the beta testing period, Apple is still tweaking features and adding new functionality. We've rounded up everything new in the fourth beta of iOS 17.2. Default Notification Sound Under Sounds & Haptics, there's a new "Default Alerts" section that allows you to ...
All New CarPlay Five New Features Article 2

What to Expect From All-New CarPlay, Still Listed as Coming 'Late 2023'

Tuesday November 28, 2023 7:44 am PST by
At WWDC in June 2022, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, increased personalization, and more. Apple's website still says the first vehicles with support for the next-generation CarPlay experience will be announced in "late 2023," but it has not shared...
Google Drive

Some Google Drive Users' Files Have Mysteriously Vanished

Tuesday November 28, 2023 3:55 am PST by
Google Drive users have been warned not to disconnect their account within the Google Drive for desktop app, after a spate of reports of files going missing from the cloud service. Alarm bells began ringing last week on Google's community support site when some users reported files mysteriously disappearing from Google Drive, with some posters claiming six or more months of data had...