Source: Finance Association
① The proportion of the first-generation Vision Pro supply chain in mainland China has increased to around 60%. ② The supply chain has begun preparing production plans for the second generation Vision Pro. There will be 4 models. Prototyping will begin in the second quarter of 2024, and BOM costs for affordable models are expected to be cut in half. ③ Brokers pointed out that Vision Pro is expected to start a new consumer electronics cycle.
According to Interface News today,$Apple (AAPL.US)$The company will officially mass-produce the first generation Vision Pro in December of this year. The first batch is about 400,000 units. The sales target is 1 million units in 2024 and 10 million units in the third year; the hardware cost is about 1,700 US dollars. Apple Vision Pro's supply chain ratio in mainland China has increased dramatically to around 60%.
Meanwhile, Apple's supply chain has begun preparing production plans for the second generation Vision Pro.
According to today's news from the Electronic Times, Apple's second-generation Vision Pro will have 4 models, 2 of which have already been determined: one will target the high-end market like the first generation, while the other is an affordable version. Apple aims to reduce the BOM (bill of materials) cost of the affordable version to 50% of the first-generation product.
The second-generation Vision Pro will begin prototyping in the second quarter of 2024. According to progress, it is expected to be released as soon as the second half of 2025; furthermore, Apple is also developing AR glasses at the same time.
It took more than 5 years for Apple to build the first-generation Vision Pro. According to the industry, the second-generation Vision Pro is relatively fast. If it enters P1, it is estimated that it will enter mass production in 1-2 years.
The technology of the previous first-generation Vision Pro was amazing, but the price of 3,499 US dollars discouraged many consumers, which is 3 times the price of Meta's highest-end Quest Pro.
Therefore, if it wants to open up the XR device market, the affordable version is one path Apple has to take. A few days ago, there were also foreign media sources that Apple plans to launch the 1,500-2500 US dollar Vision Pro, a price drop of 28.55%-57.13% from the previous generation. Perhaps this is the second-generation affordable model mentioned in today's news.
As the XR stands out, it is getting a lot of attention from Apple. Cook has stated many times before that he believes AR will change human life, that it will soon be as ubiquitous as the Internet or smartphones, and that Apple will continue to invest. There is also news in the supply chain that Apple has indeed invested heavily. Recently, it also set up a VPG division, which is specifically responsible for headsets.
It is worth mentioning that Apple will hold an “Apple Vision Pro Developer Lab” event in Shanghai today (November 28). At that time, all developers will be able to experience VisionOS, iPadOS, or iOS apps running on Apple Vision Pro. DIGITIMES Research analyzed that after Apple entered XR, 2 million apps on iOS were automatically transferred to the VisionOS App Store, a blessing for both users and developers.
▌Vision Pro is expected to start a new cycle of consumer electronics suppliers or have these
As Apple's blockbuster product in the XR field, Vision Pro is seen as a landmark achievement in the development of consumer electronics. According to Cinda Securities's November 26 report, Vision Pro is expected to start a new consumer electronics cycle, and its industrial chain has a lot of long-term space.
Implemented to specific links in the industrial chain, Minsheng Securities reported on November 13 that Vision Pro's technological innovation is impressive, indicating the main line of hardware upgrades. Let's look at it specifically:
1) Optical Solution: In terms of VR, Pancake has the advantage of being lightweight and thin, and the weight can be optimized and reduced by about 50%; in addition, the IPD adjustment included in Vision Pro has significantly improved refractive index and imaging quality, etc., and is expected to become mainstream in the long run. In terms of AR, Birdbath is currently the mainstream solution, and diffractive optical waveguide solutions can be expected in the future.
2) Display solution: In terms of VR, FastLCD has the best overall effect and cost, and is currently mainstream; the micro OLED single-lens pixels used by Vision Pro are as high as 23 million, and the effect exceeds 4K, leading a new round of XR display hardware innovation.
3) Perception interaction: In terms of sensors, VisionPro is equipped with 12 cameras+5 sensors+6 microphones to support interaction. Users only need to simply watch the app and interact with gestures. Furthermore, eye tracking technology can greatly improve the interactive experience, enabling applications to move from the B-side to the C-side.
Analysts further pointed out that the iteration of XR product technology will bring new growth opportunities to VR hardware. Among them, screen+optics, which account for a relatively high amount of value, and the inspection supply chain with a high degree of customization are worth focusing on.
Based on today's report and brokerage reports, companies related to the Vision Pro supply chain include:
Editor/jayden