Apple is reportedly shifting its mixed reality (MR) device strategy by abandoning the development of its existing high-end Vision Pro headset in favor of launching an affordable MR device expected to debut next year. According to a report from Economic Daily News, it’s rumored that Foxconn is likely to replace Luxshare as the manufacturer for Apple’s affordable MR device, although Foxconn typically refrains from commenting on order specifics and client relationships.

Alongside this move, Apple reportedly plans to incorporate AI capabilities into the product, which is anticipated to significantly boost sales of the affordable MR device. Per the sources cited by the same report, they are optimistic that companies like Genius Electronic Optical (GSEO) and GIS Industries are poised to benefit from the opportunities.

According to a report from tech media outlet The Information citing sources, Apple initially planned to release two versions of the Vision device, akin to the standard and Pro versions of the iPhone. However, Apple is said to have informed at least one supplier to halt the development of the next-generation high-end Vision Pro headset.

Recently, Apple has planned to launch the USD 3,500 Vision Pro in eight new markets, including China and Japan. However, The Information, citing a source from a supplier, reported that after receiving Apple’s forecast of weakened demand for the Vision Pro by August, the supplier cut production by half in May.

The sole supplier, which has no competitors, produced approximately 460,000 Vision Pro components in the first four months of this year and plans to produce an additional 100,000 components from May to August. This suggests that Apple expects to produce at most around 500,000 units this year, with no significant production increase before August.

The Information revealed that Apple started developing a more affordable version of the Vision product in 2022, internally codenamed “N109.” According to the report, Apple is also trying to reduce the weight of the budget version by at least one-third compared to the Vision Pro. It is further reported that Foxconn will replace Luxshare as the manufacturer for Apple’s affordable MR device.

Industry sources cited by the same report indicated that Apple has already announced Apple Intelligence, confirming that AI applications will be integrated into all future devices. The next generation of MR devices, featuring more AI functions and applications along with a more affordable price, is expected to boost demand and significantly increase shipment volumes, benefiting Foxconn.

Other Taiwanese collaborators are also poised to benefit. GSEO has gradually been obtaining orders from the supply chains of Sony, Meta, and Apple, providing lenses and components for VR/MR headsets. GSEO expects VR-related applications to account for 20-30% of its revenue this year.

GIS plays a crucial role in the Vision Pro supply chain, handling the most technically challenging lens bonding tasks. Its production base is located in Chengdu, China, and it is generally anticipated to be part of the supply chain for Apple’s affordable MR headset as well.

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(Photo credit: Apple)

Samsung’s upcoming flagship Galaxy S24 series, reportedly set to be unveiled in mid-January 2024, will feature Qualcomm’s latest Snapdragon 8 Gen 3 processor. This new series will highlight Samsung’s first-ever generative AI smartphone, with a sales target expected to increase by over 10% compared to the previous S23 model, reaching more than 34 million units.

As reported by “The Korea Daily,” Samsung is planning to unveil the Galaxy S24 series of new smartphones in mid-January 2024, making it the first major Android flagship to be launched next year. To ensure the successful market debut of the new devices, Samsung is expected to initiate the procurement process from its supply chain in the very near future.

Industry sources have revealed that Samsung’s internal estimates project smartphone sales for next year to reach approximately 253 million units and this figure is expected to be adjusted upwards in the near future according to Economic Daily.

In comparison, Apple’s projected total iPhone sales for the next year, according to a market analyst, are expected to be around 250 million units, making the estimates of these two major smartphone giants quite close.

It is reported that Samsung’s recent flagship devices in the S series have delivered subpar performance. Both the S21 and S22 models achieved sales figures of fewer than 30 million units, while the estimated sales for the S23 series stand at around 31 million units.

Notably, Samsung is currently collaborating with major players such as Google and Microsoft, and there is a strong likelihood that they will incorporate generative AI features like Google Bard or ChatGPT into the Galaxy S24.

This move aims to make the Galaxy S24 their first generative AI smartphone, serving as a prominent selling point for the new device and enhancing the operating system, thereby narrowing the gap with Apple.

Industry experts point out that while smartphone brands tend to estimate sales figures for new products before their launch, the smartphone market has experienced weakened demand in recent years.

Many brands have adopted a conservative approach to sales estimates, even controlling production capacity and marketing budgets to reduce risks. In this context, Samsung’s decision to set clear growth targets stands as a demonstration of their high confidence in the new product.

As for the supply chain, Largan Precision is the primary supplier of main camera components for the Galaxy S24, while GIS is responsible for supplying the in-display fingerprint module, and TXC Corporation provides quartz components.

(Photo credit: Samsung)