The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. — Ed.
Asian optical component makers are expected to supply components for Apple XR devices from 1Q23. Apple Reality, which focuses on next-generation computing, is expected to be released in 2H23, after being unveiled in 1H23. XR-related companies should benefit.
Apple XR device to be released in 2H23 after being unveiled in 1H23
Shipments of optical parts to be installed in Apple Reality (XR device) are expected to begin in 1Q23. The visibility of Apple’s XR device, which is set to be unveiled in 1H23 and released in 2H23, has increased. Related parts makers should see mid/long-term benefits.
According to Taiwanese media, Taiwanese lens maker Genius Electronic Optical will supply lens modules for Apple XR devices from February or March. The lens module to be supplied by the company is expected to be an eyepiece that can magnify displays.
According to our channel check, it is understood that Asian optical module makers will start supplying related components between the end of 1Q23 and the beginning of 2Q23. In a situation where expectations for Apple XR devices have been lowered due to launch delays, the increased visibility of a launch in 2H23 is positive for Apple and related value chains.
Apple Reality focuses on next-gen computing rather than games
Unlike conventional VR devices, Apple Reality is expected to focus on next-generation computing capabilities that can replace PCs, rather than on games. It is expected that the main functions will include 3D avatar video conferencing using full body tracking and a function to convert 2D images on a Mac into 3D objects in XR devices.
For reference, the product that has recently been postponed indefinitely is Apple Glass, a type of glasses that was originally expected to be released in 2025. It is judged that it will be difficult to release the device in the near future due to issues such as battery problems, insufficient display brightness, and privacy.
Regarding the expansion of the XR market, LG Innotek, Samsung Electro-Mechanics, Sekonix, APS Holdings, Sunic System, Namuga, Newflex, and HyVision System are expected to benefit.
