Earlier Apple AR Headset Shipments Figure May Have Been Too Optimistic, Implies Analyst

Apple’s AR headset is not just reported to be extremely expensive for a product that many deem to only satisfy a particular customer niche, it is also expected to be produced in limited quantity. An earlier estimation mentioned that the company would ship around one million units of its first-ever mixed-reality headset, but one display analyst has a different opinion while also providing sound reasoning for it.

Analyst claims that Apple supplier does not have the capacity to mass produce a large number of AR headset displays

Commenting on Bloomberg’s Mark Gurman’s Twitter thread, Display Supply Chain Consultants (DSCC) founder and CEO Ross Young comments that the initial AR headset shipments figure is ‘too high,’ which would naturally spark some curiosity amongst readers, and one of them decided to pursue an answer. Though Young did not provide an exact figure, he provided reasoning as to why these shipments could be few this year.

Apple’s unnamed supplier simply does not have the capacity to mass produce a sufficient number of microLED panels this year. Assuming Apple is only relying on one supplier, as it is relying on the vendor Luxshare to mass produce the product, that microLED company will likely reach its production capacity soon. This means that either that supplier will have to upgrade its facilities, or Apple will slowly have to expand that supply chain by adding more companies.

Though Ross Young did not write an exact figure, he makes it clear that Apple’s AR headset will not be shipped in droves

Given the fewer microLED panels made this year for the AR headset, it is also likely that Apple will be paying a higher price for these units, which would be the reason why the AR headset is said to cost the consumer somewhere between $3,000-$5,000. Thankfully, the company is said to be actively developing the successor, which is reportedly cheaper than the first version, with Foxconn overseeing mass production.

In addition to undertaking orders, Foxconn is said to provide an automation process that will improve the device’s production performance and lower costs while increasing the number of units shipped in a calendar year. Given the price of the head-mounted wearable, it is difficult to comment on how well it will do this year, but Apple is deeply invested in the augmented reality market and will continue to push forward with related product launches.

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