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Apple’s highly anticipated augmented reality/virtual reality headset, rumored to be named Reality Pro, is expected to be announced at the upcoming Worldwide Developers Conference (WWDC) next month. However, according to a recent report, the initial availability of the device may be extremely limited, as Apple is allegedly facing production issues related to the headset.
Renowned analyst Ming-Chi Kuo has shed some light on this matter, suggesting that Apple’s heavy reliance on a single supplier for most of the critical components could be a partial explanation for the anticipated production difficulties. Kuo’s report highlights that Apple is depending on one supplier for several key components, further exacerbating concerns about the headset’s production.
While the official unveiling and demonstrations of the Apple Reality Pro headset are scheduled for June, mass production is not expected to commence until December. This timeline aligns with the previous report that hinted at Apple’s anticipation of troublesome production. Consequently, it is unlikely that the headset will be available to most users before fall at the earliest.
Sources cited by The Wall Street Journal indicate that both individuals within Apple and the company’s supply chain are worried about potential delays. These concerns, coupled with the acknowledged production issues, have created an atmosphere of apprehension regarding the headset’s availability.
According to a recent report, Apple’s reliance on a sole supplier for each critical component is causing particular concern. Ming-Chi Kuo has listed the exclusive suppliers for various key components in a Medium post. Luxshare-ICT has been identified as the exclusive assembler, while Sony exclusively provides the micro OLED display, and TSMC exclusively supplies the dual processors.
Everwin Precision serves as the primary supplier for the casing, Cowell exclusively provides the 12 camera modules, and Goretek is the exclusive supplier for the external power supply. These components are reportedly among the top five most expensive material costs for the device.
Typically, Apple prefers to have multiple suppliers for its components, as it allows the company to negotiate competitive prices and provides flexibility in mitigating production difficulties by switching orders between suppliers. However, cutting-edge technologies often require Apple to rely on a single supplier initially, as seen with A-series and M-series chips, as well as iPhone screens initially being exclusively manufactured by Samsung Display before diversifying suppliers.
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In the case of the Reality Pro headset, Apple seems to be initially dependent on a sole supplier for several critical components, including assembly, display, processors, camera modules, and power supply. Notably, the only component reported to have more than one supplier is the casing.
As Apple gears up for the launch of its highly anticipated AR/VR headset, the company’s reliance on a single supplier for most key components raises concerns about potential production delays and limited availability. While the headset is expected to make its debut at WWDC, eager consumers may have to wait until the fall, at the earliest, to get their hands on this cutting-edge device.
With mass production not slated to begin until December, Apple will need to address the production challenges and ensure a steady supply of critical components to meet the demand for its Reality Pro headset.
