Apple, a company often associated with relocating its industrial chain overseas, is reportedly shifting its focus back to supply chains in mainland China. According to sources from several consumer electronics supply chain companies, Apple is set to commence mass production of its first-generation MR (mixed reality) product, Vision Pro, in December this year.
The initial stock is expected to include 400,000 units, with a sales target of 1 million units by 2024 and a goal of reaching 10 million units by the third year. In contrast to the previous iPhone 15 series, where mainland parts comprised a low proportion, the Apple Vision Pro’s mainland supply chain has notably increased to approximately 60%.
The hardware cost of the Apple Vision Pro is estimated at around $1,700, with key suppliers including Lingyi Zhizhi, Luxshare Precision, Pengding Holdings, Desai Battery, Zhaowei Electromechanical, Goertek, Changying Precision, and Lens Technology. Lingyi Intelligent Manufacturing, a significant contributor to the mainland supply chain, has reportedly hired thousands of workers and prepared dozens of production lines to expedite production.
Although both Lingyi Intelligent Manufacturing and Luxshare Precision have not responded to verification requests, Luxshare Precision’s Chairman, Wang Laichun, has publicly mentioned the preparation for Apple Vision Pro production.
In recent years, Apple had been undergoing a shift in its industrial chain, with a decline in the proportion of mainland Chinese components for products like the iPhone 15 series. However, this year signals a shift as Apple re-embraces the Chinese supply chain, as evidenced by the increased mainland supply chain involvement in the first-generation MR products.
Observers attribute this shift to Apple CEO Tim Cook’s emphasis on Apple Vision Pro and the advanced and mature supply chain system in China, which provides significant support to Apple’s requirements.
Vision Pro, released in June, has garnered positive reviews for its “spatial video” experiences. Notably, Apple has already initiated discussions with the supply chain regarding the second and third generations of Vision Pro products, aiming to reduce costs and prices for broader market appeal.
Cook’s two visits to China this year underscore his preference for mainland supply chains, emphasizing the collaborative growth of Apple and China’s supply chain. Chinese supply chain companies reportedly won Apple’s favor by showcasing flexibility and strength during the development prototype stage of the Vision Pro headset.
The Financial Times suggests that the ability of Chinese suppliers to transform Apple’s innovative ideas into reality contributed to this preference. The integration of non-mainland fruit chain factories and the return of Huawei mobile phones have further bolstered the mainland China consumer electronics supply chain, indicating a resurgence of vitality.
Companies like OFILM are experiencing a comeback, driven by increased orders not only from Apple but also from the resurgent Huawei, particularly with the success of the Mate 60 series. Observers predict that more mainland China supply chain companies will benefit from the positive trends driven by Apple and Huawei.