Apple is heavily dependant on China to build the Vision Pro headset
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- Apple's diversifying supply chains away from China, but it's still using Chinese firms to make the Vision Pro.
- A bill of materials showed eight Chinese firms are involved in the making of the headset.
- Apple's Vision Pro has been exciting investors since its reveal, sending the company's shares soaring.
Tech giant Apple has been trying to diversify its supply chains away from China — but it appears there's no getting away from the manufacturing powerhouse.
Apple's reliance on Chinese suppliers is evident from a Tuesday analysis of the latest bill of materials — a list of raw materials and parts — for the Vision Pro mixed reality headset unveiled last week, according to Wellsenn XR, a China-based consultancy.
According to Wellsenn, the list shows eight Chinese companies involved in the making of Apple's Vision Pro headset. They include camera module maker Cowell e Holdings and Luxshare, a company assembling the product for Apple.
It is not immediately clear how Wellsenn procured the list.
Last November, Apple was burned by an overreliance on Chinese production lines after the iPhone output was hit by China's relentless zero-COVID pursuit at the time. Apple has already moved some of its iPhone production to India and is also exploring moving its iPad manufacturing to the South Asian nation.
Other parts suppliers for the headset include South Korea's Samsung and LG, Taiwan's Foxconn, and Japan's Sony, according to the list published by Wellsenn
Wellsenn estimates in its report that the cost price of the parts and materials for the Vision Pro comes in at $1,733 — less than half of its $3,499 retail price tag.
And despite the internet's derision about the gadget's hefty price tag and its goofy aesthetics, the Vision Pro itself has been exciting investors.
Apple shares have been on a tear after the company unveiled the product. Some analysts said at the time the hardware product could drive up the tech giant's valuation massively, Insider's Zinya Salfiti and Nidhi Pandurangi reported on June 6.
Apple shares closed 0.3% lower at $183.31 on Tuesday but are up 41% so far this year. The company is now valued at $2.89 trillion.
Apple did not immediately respond to a request for comment from Insider sent outside regular business hours.