A recent report claims that firms are withdrawing from Apple’s augmented reality project.
Ming-Chi Kuo, an analyst said that Apple’s main supplier Pegatron will be moving the augmented reality production via a subsidiary, Luxcaseict. He mentioned that Luxshare’s joint venture will take over the production and design of the Apple headset. However, Kuo believes that the move will lead to a good thing, which is the product’s cost reduction.
Pegatron remains a shareholder in Luxcaseict, so even if the company withdraws from the headset business, the firm will profit when the project succeeds. At the same time, Luxshare will not give profit at the start as the first-generation headsets’ shipment will be low. Luxshare will grow depending on the AR headset’s performance.
Lastly, Kuo says that Apple plans to create a low-end and a high-end headset, with the low-end device expected to launch in 2025. The headset may be announced during the WWDC 2023.