Apple to develop AR device at contract manufacturer Luxshare: Report

(Image: AFP)

Apple has reportedly turned to long-time Chinese manufacturer, Luxshare, to help develop the company's upcoming AR device.

As per Nikkei Asia, Luxshare has taken over development from Apple's AR team in Shanghai, that were formerly part of Pegatron, an electronics manufacturing company.

Nikkei Asia reported that this was a milestone for Chinese manufacturers, as Apple had previously relied on Taiwanese suppliers like Foxconn, for first-generation product lines.

Moneycontrol could not independently verify the report.

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Pegatron, who has been helping make Hololens devices for Microsoft, supposedly exited the project because it wasn't convinced of Apple's AR plans. Luxshare already helps Apple build iPhones, the Apple Watch and AirPods.

Besides Luxshare, Apple is developing a cheaper second-generation version of the AR device at Foxconn, sources told Nikkei Asia. Foxconn will help Apple lower costs by automating production, and improving production capacity.

Taiwan Semiconductor Manufacturing Co. (TSMC) and Sony of Japan, will develop micro OLED displays to be used on the device. Some part of the development process has already happened at a Apple campus in northern Taiwan.

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"Apple's first generation of AR devices will be extremely expensive, and really only can attract those passionate tech geeks or premium customers," an inside source told Nikkei Asia.

"But Apple hopes to push the price down in the second generation of devices, which is in parallel development, to a more affordable price, like a high-end Mac computer, and hopes to attract a bigger user base," the source added.