Tag: Display Supply Chain Consultants

  • Apple turns to Chinese supply chain for large-scale production of Vision Pro MR headset

    Apple turns to Chinese supply chain for large-scale production of Vision Pro MR headset

    Apple Turns to Chinese Suppliers for its Vision Pro Headset

    Apple is set to rely heavily on its supply chain in mainland China for its highly anticipated mixed reality (MR) headset, the Apple Vision Pro. Recent reports indicate that a significant 60% of the components for the Vision Pro will be sourced from Chinese suppliers, marking a departure from Apple's recent supply chain diversification efforts. This shift highlights the increased involvement of Chinese suppliers, particularly in the development of innovative products like the Vision Pro.

    A Shift in Supply Chain Strategy

    The Vision Pro, set for mass production in December, has an ambitious sales target of 1 million units in 2024, with the aim of reaching 10 million units by the third year. To achieve this, Apple has chosen to source a substantial portion of its components from China, a notable change compared to the iPhone 15 series.

    Key Chinese Suppliers

    Lingyi Intelligent Manufacturing, a prominent Chinese supplier, will play a crucial role in the production of the Vision Pro. They will provide components such as heat sink modules, headbands, eye masks, and nose pads, valued between $250-300 per unit. Another key supplier, Lixun Precision, will handle exclusive OEM assembly and contribute components valued at approximately $150-200 per unit.

    Benefits of Chinese Supply Chain

    The involvement of Chinese supply chain companies in the development and prototype stages of the Vision Pro headset has showcased their remarkable flexibility and capabilities. This has played a pivotal role in winning Apple's favor and CEO Tim Cook has publicly expressed his preference for mainland supply chains, especially in the creation of innovative products.

    By sourcing a majority of components from China, Apple stands to benefit from reduced production costs, potentially enabling the company to lower the overall cost of the Vision Pro. This strategic relocation of the supply chain to China marks a significant shift and highlights Apple's confidence in the capabilities of Chinese suppliers.

    In conclusion, Apple's decision to heavily rely on Chinese suppliers for the Vision Pro headset represents a departure from its recent supply chain diversification efforts. With an ambitious sales target and the aim to reach millions of units in the coming years, Apple is placing its trust in the flexibility and capabilities of Chinese supply chain companies. This strategic move is expected to reduce production costs and potentially lower the overall cost of the Vision Pro for consumers.

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  • Display Shipment Hints at Increased Popularity of Pro Models in iPhone 15 Series

    Display Shipment Hints at Increased Popularity of Pro Models in iPhone 15 Series

    Display Supply Chain Consultants (DSCC) has reported a significant rise in panel shipments for the iPhone 15 series. According to the data, panel deliveries have grown by 16% compared to the iPhone 14 series and by 21% compared to the iPhone 13 series during the same period through October.

    Growing Popularity of iPhone 15 Pro Models

    DSCC’s findings indicate that the iPhone 15 Pro models, particularly in October, have become increasingly popular. The Pro variants have secured an impressive 71% share of the total panels shipped, showing a notable increase from the 65% share recorded in September.

    Influence of Higher Starting Price

    It is worth noting that the higher starting price of the iPhone 15 Pro Max, priced at $1,199 with 256GB of storage, compared to its predecessor, the iPhone 14 Pro Max at $1,099 with 128GB of storage, has influenced the Average Selling Price (ASP). The ASP of the iPhone 15 series has seen a 5% increase compared to the iPhone 14 series. This indicates that consumers are willing to opt for higher-storage variants.

    Samsung Display’s Role in Panel Shipments

    Samsung Display (SDC) continues to play a pivotal role in Apple’s supply chain, contributing significantly to the panel shipments for the iPhone 15 series. From June to October, SDC accounted for 81% of the panels shipped, making it a reliable and consistent supplier for Apple. This aligns with previous years where SDC played a key role in delivering panels for all four iPhone models.

    Entry of Other Panel Suppliers

    While Samsung Display remains a dominant supplier, other panel suppliers have entered the scene recently. LG Display (LGD) started shipping displays for the iPhone 15 Pro Max in September, securing an 18% share for that model through October. Additionally, China’s BOE joined the supply chain last month, contributing with a 1% share for the iPhone 15 series.

    Increasing Popularity of iPhone 15 Pro Models

    DSCC’s Senior Research Director, David Naranjo, highlights a trend where the iPhone 15 Pro models are gaining popularity. Naranjo states that “panel shipments for the iPhone 15 Pro models account for a higher share compared to the iPhone 14 Pro and iPhone 13 Pro models during the June – October period.” Cumulatively, the iPhone 15 Pro models hold a 64% share, surpassing the 54% share recorded for the iPhone 14 series and iPhone 13 series during the same period.

    Conclusion

    In conclusion, the latest data suggests a growing demand for the iPhone 15 series, driven by the increasing popularity of its Pro models. With the iPhone 15 Pro variants securing a significant share of panel shipments, it is evident that these models are resonating well with consumers. As the market continues to evolve, it will be interesting to see how the demand for the iPhone 15 series progresses.

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