Sony may cause an issue for Apple’s Vision Pro production
Currently, Apple is relying on two display suppliers for its mixed-reality headsets. LG supplies the external panels while Sony is responsible for the internal ones used in the Vision Pro. As per the report, Sony’s maximum annual capacity is less than a million units and this can be a problem for Apple.
Apple’s latest AR headset uses OLED on Silicon or OLEDoS displays. The report claims that Sony can mass produce only up to 900,000 internal display units for the Apple Vision Pro. There are other manufacturers of this display technology available in the market, but the quality of the parts that Sony offers may be a reason for Apple to prefer the Japanese company over other suppliers.
However, having one supply chain partner can limit the number of devices that can be mass-produced annually. Sony may also charge Apple more for its OLEDoS. Previous estimates suggest that the 4K microLED panels cost $350 for a pair, which is 10% of Vision Pro’s retail price in the US. So, Apple may need to involve more suppliers to bring down the price.
The report also notes that Sony can only provide 450,000 display sets for the Apple Vision Pro. Even if Apple gets hold of the entire supply, the company will reportedly be able to ship only 150,000 units of the headset when it officially launches in 2024. This can affect the success of the product in which Apple has invested billions of dollars for research and development.
How Apple is planning to mitigate the issue
Apple has reportedly started developing an Apple Vision Pro successor which is likely to be more affordable and may arrive by 2025. The company is expected to mitigate these supply chain issues by asking Samsung to mass-produce OLEDoS for the second-gen model. Apple is said to add more partners to its supply chain within two years as the product’s traction may remain limited with the expensive price tag.
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