Business News Report
February 23, 2023

Apple Partners With China-based Luxshare for AR Device Development

In Brief

Apple has partnered with a Chinese supplier, Luxshare Precision Industry, to develop its long-awaited augmented reality device.

Taiwan-based Foxconn is also involved in the AR project and will work on the development of a cheaper second-generation AR device.

Apple is collaborating with a Chinese supplier for the first time to develop its augmented reality device. According to Nikkei Asia, Apple has chosen China-based Luxshare Precision Industry Co., Ltd. to help develop the AR device, which has been in the works for years. 

Luxshare will reportedly take over the AR development team in Shanghai, previously owned by Taiwan’s Pegatron. With this significant move, Apple is not only advancing its AR ambitions but also strengthening its ties with China’s tech industry.

In similar news, Chinese tech giant Tencent is rumored to partner with Meta to bring Quest headsets to the Chinese market.

Pegatron, a company that has been assembling iPhones for a long time, was the first supplier to assist Apple in developing AR devices. However, their collaboration on this project was sporadic for four years. According to an executive in the supply chain who spoke to Nikkei Asia, Pegatron had been producing Microsoft’s Hololens mixed-reality headset for a number of years. However, the company became doubtful about Apple’s AR plans and ultimately withdrew from the project to concentrate on other areas like automotive and servers.

According to sources cited by Nikkei Asia, Luxshare is eager to secure as much business from Apple as possible and has become one of the company’s most important China-based suppliers. Luxshare currently helps build Apple’s iPhones, Apple Watch, and AirPods. 

Taiwan-based Foxconn is also involved in the AR project, with plans to work on the development of a second-generation AR device at a lower cost. The focus for Foxconn will be on automating mass production and improving production performance to help Apple reduce overall expenses.

As per a Bloomberg report last month, Apple has indefinitely suspended its plans for AR glasses. The company initially planned to release the AR glasses about a year after launching the mixed-reality headset, but the plan has reportedly been halted. According to the source, Apple has shifted its focus towards a more affordable version of the mixed-reality headset, which is expected to be released in 2024 or early 2025.

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About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.

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Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.

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