Luxshare has taken over the AR development team in Shanghai, previously owned by Taiwan’s Pegatron, the first to help Apple develop the device, the report said, citing people familiar with the matter.

Taiwan-based Foxconn is also helping with the project, Nikkei said, and Apple has tapped two of its most important suppliers, Taiwan Semiconductor Manufacturing Co and Sony, to develop micro OLED displays for the device.

The iPhone maker, Luxshare Precision, Foxconn, TSMC and Sony did not immediately respond to Reuters’ request for comment.

Apple’s headset is set to cost around US$3,000 and will be launched in this year’s spring event, Bloomberg previously reported.

The company hopes to reduce the price for the second generation of the device, Nikkei said.

The device will compete with the likes of Meta Platforms’ Quest Pro virtual and mixed-reality headset launched late last year at US$1,500.