Chinese Apple Suppliers Tumble as US Tech Giant’s First Mixed-Reality Headset Disappoints
Li Jun
DATE:  Jun 06 2023
/ SOURCE:  Yicai
Chinese Apple Suppliers Tumble as US Tech Giant’s First Mixed-Reality Headset Disappoints Chinese Apple Suppliers Tumble as US Tech Giant’s First Mixed-Reality Headset Disappoints

(Yicai Global) June 6 -- Shares in Shenzhen Everwin Precision Technology, Suzhou Qingyue Optoelectronics Technology and other Chinese firms in Apple’s supply chain plunged today after the US tech giant's first augmented-reality device, which blends the real and virtual worlds, failed to meet expectations.

Everwin Precision’s share price [SHE:300115] sank 18.9 percent to close at CNY11.36 (USD1.60), while Qingyue Optoelectronics [SHA:688496] hit the exchange-imposed limit-down of 20 percent to end the day at CNY15.60 (USD2.20).

Other suppliers also fared badly. Shenzhen iN Cube Automation [SHE:301312] finished the day down 14.9 percent at CNY84.80 (USD11.90), Rongcheer Industrial Technology [SHE:301360] slumped 14.7 percent to CNY88.80 (USD12.50), Luxshare Precision Industry [SHE:002475] sank 7.3 percent to CNY26.30 (USD3.70) and Goertek [SHE:002241] dived 6.9 percent to CNY18 (USD2.50).

The Apple Vision Pro, a standalone headset that gives wearers an interactive experience between the real world and computer-generated content, was unveiled in China this morning at a price of USD3,499 per headset. Sales will start early next year.

But some market insiders feel the price is too high and the start of sales too late.

It is not possible to say at the moment whether Apple’s mixed-reality device will sell well or not, said Lin Jiayi, general manager of investment firm Xuanjia Private Equity Fund Management.

If California-based Apple is able to fix issues such as dizziness caused by wearing the headsets for a long time, and satisfy consumers’ unmet needs in the augmented-reality field through rapid technological upgrades, the headset should do well and will help boost the firm’s share price, Lin said.

Apple’s new device is likely to attract a great number of content creators for mixed reality scenarios, enriching the currently available content ecology and experiences, said Kong Rong, an analyst with TF Securities.

The new experiences brought by Apple Vision Pro will also probably spur the upgrading of software and hardware and speed up the rapid penetration of consumer-grade mixed-reality equipment in the market, she added.

Editors:Shi Yi, Kim Taylor

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Keywords:   Apple