Apple has reportedly partnered with Chinese manufacturer Luxshare to develop its AR device, and Foxconn to work on the parallel development of a cheaper second-generation AR device.

This marks the first time Apple tapped into a Chinese supplier for a first-generation product, with Luxshare having taken over the AR development team in Shanghai that was previously owned by Taiwan's Pegatron, a longstanding manufacturer of Apple’s iPhone. 

Analyst QuickTake : Apple's AR smart glasses project was scrapped indefinitely in January 2023 in favor of focusing on the development of its MR headset. However, the launch of the MR headset has faced repeated delays, with the latest pushback delaying the launch date to June 2023 amidst rumors of hardware and software issues. Further, despite Apple’s use of a Chinese manufacturer, the MR headset will reportedly be markedly more expensive than other headsets on the market, estimated to retail at USD 3,000.