In his latest survey, the TF International Securities tech analyst, Ming-Chi Kuo out that Luxshare ICT is likely to lead, develop and produce Apple’s first-generation AR/MR headset. Ming-Chi Kuo stated that Pegatron will likely transfer the AR/MR development team and production resources to Luxcase Ict in the first quarter of 2023.
Luxcase ICT is a joint venture between Luxshare ICT and Pegatron and according to him, Pegatron is a shareholder of Luxcase Ict, so Luxcaseict’s profit will be beneficial to Pegatron, but essentially, Pegatron is gradually withdrawing from Apple’s headset business.
Therefore, Luxshare ICT will take over this product’s subsequent design and production. Such changes will lead to the subsequent acceleration of reducing the cost of the headset, which is what Apple expects.
As the shipments of Apple’s first-generation AR/MR headsets are extremely low, it is difficult for Luxshare ICT to profit from this investment in the short term. Luxshare ICT’s growth in 2023 and 2024 depends entirely on Apple’s orders. Therefore, if Apple expects Luxshare ICT to take over the headset, it will be difficult for Luxshare ICT to refuse this request.
Ming-Chi Kuo further stated that Luxshare ICT will use Luxcase Ict to win orders for Apple’s new AR/MR headset products in the future. He thinks the best scenario for Luxcase is for Apple’s headsets to sell well and conduct an IPO when the visibility of revenue and profit growth is good.
However, as per the report, Apple’s second-generation AR/MR headset has two high-end and low-end models. The high-end and low-end will be developed and produced by Luxcase Ict and Foxconn, respectively. The current launch schedule for both models will likely be in 2025.
In all, Ming-Chi Kuo affirmed that he believed this could be a potential warning sign for Apple, despite repeatedly stating that it is optimistic about AR. Recall that in the past two years, Apple suppliers have been more willing to invest in new businesses, such as electric vehicles, than cooperate with Apple’s expansion/investment.
