A report on Friday suggested that initial Apple Reality Pro availability is likely to be very limited, as the Cupertino company is “anticipating some production issues” with its upcoming AR/VR headset.
A new Ming-Chi Kuo report provides a likely partial explanation for this: Apple is reportedly dependent on just one supplier for most of the key components …
Apple Reality Pro availability
Apple’s combined augmented reality/virtual reality headset is expected to be announced at WWDC next month. It’s believed to be branded Reality Pro.
However, while the upcoming headset will be unveiled and demonstrated in June, mass production isn’t expected to begin until December. A report on Friday suggested that Apple is expecting production to be somewhat troublesome.
While the headset is still on track to make its debut at WWDC, today’s report points out that it won’t be available “for most users until the fall at the earliest.” Mass production isn’t slated to begin until December, the report says.
Even with mass production still months away, WSJ sources say that people inside Apple and inside the company’s supply chain are worried about further delays […] and the company is already anticipating some production issues.
Almost all key parts have just one supplier
A fresh report today suggests one reason for concern: for almost all of the key components, Apple is dependant on a single supplier for each. Kuo named these in a Medium post.
Apart from the assembly (exclusive to Luxshare-ICT), micro OLED display (exclusive to Sony), dual processors (exclusive to TSMC), casing (Everwin Precision as the main supplier), 12 camera modules (exclusive to Cowell), and external power supply (exclusive to Goretek) are the top 5 most expensive material costs for this new device.
Apple usually likes to have multiple suppliers for as many components as possible. This enables the company to negotiate the best possible pricing, and means that it can cope with any production difficulties by switching orders between suppliers. With cutting-edge tech, however, the company is often left dependent on a single supplier for a time.
This remains true for A-series and M-series chips, and most iPhone screens are initially exclusively manufactured by Samsung Display before other companies catch up.
For Reality Pro, then, it seems Apple will initially have just one supplier for:
- Assembly
- Display
- Processors
- Camera modules
- Power supply
Indeed, the only part said to have more than one supplier is the casing.
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