LG Innotek and Newplex to Benefit Directly
The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. -- Ed.
Apple’s upcoming XR device is expected to start mass production around Nov 2022 and see release in 1Q23. Meta’s new XR device is likely to launch in Oct 2022. We expect the related market to grow rapidly and benefit strongly over the mid/long term.
Apple’s XR device to start mass production in November
Apple’s new extended reality (XR) device, which is predicted to be released in 1Q23, is expected to begin mass production around Nov~Dec 2022. Meta Quest Pro, a new XR device from Meta Platforms, is forecast to launch in Oct 2022. We expect the XR device market to grow rapidly as global IT companies ramp up their entry into XR.
Recently, Apple applied for trademarks for ‘Reality One’ and ‘Reality Pro’, where ‘Reality’ is believed to be the name of its upcoming XR device. As production looks imminent, the hardware is highly likely to be released in 1Q23. Initial production amount is to reach several hundred thousand units, but if actual demand exceeds expectations, this quantity will almost surely increase.
Apple Reality to set next level for ultra-high-performance IT devices
In terms of hardware specs, Apple Reality is forecast to boast 3,000 PPI OLEDoS, 16GB DRAM, two M1-level SoCs, and about 13 camera modules. The weight of the device is estimated at 150-200g, and the price is projected at the US$2,500~3,000 range.
Aside from the symbolic impact, Apple’s expected device launch is significant in that it promises to raise the existing hardware level by at least a few steps compared to existing XR devices. By reducing the burden of performance optimization for developers, the creation of high-quality content should become much easier.
Regarding XR, LG Innotek and Newplex are to benefit directly, and potential beneficiaries include LG Display, Samsung Electro-Mechanics, Innox Advanced Materials, APS Holdings, and Sunic System.