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Apple has reportedly removed Taiwanese electronics manufacturer Pegatron from the supply chain for its upcoming mixed-reality headset, according to a report from DigiTimes. Pegatron was originally thought to be the exclusive partner for the assembly of the headset. However, Apple is said to have requested that Pegatron hand over manufacturing and final assembly operations to Chinese supplier Luxshare, a process that 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, including the sale of its factory in Shanghai to Luxshare. Despite having designed the production process for the headset, Pegatron may not see the loss negatively since manufacturing for Apple requires large volume to maintain profit margins. The headset is expected to be produced in low volume initially as both the software and hardware have yet to mature, and the headset market remains unproven.
Luxshare’s takeover marks the first time that a Chinese company will be solely responsible for the manufacture and assembly of a new Apple product at launch. Historically, Apple device manufacturing has first been developed and undertaken by companies in Taiwan before gradually handing off to Chinese firms.
Luxshare is no stranger to working with Apple and already manufactures AirPods for the tech giant, along with 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.
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The move to Luxshare for the production of Apple’s mixed-reality headset is a significant one, and it remains to be seen how the partnership will work out. However, it appears that Apple is keen to diversify its supply chain, and Luxshare’s expertise in producing high-quality hardware could prove crucial to the success of the headset.