As per sources, Apple's Chinese contract manufacturer Luxshare Precision Industry Co Ltd will assist in the development of the iPhone maker's long-awaited augmented reality (AR) device.

Luxshare has taken over the Shanghai AR development team previously owned by Taiwan's Pegatron, the first to assist Apple in developing the device, according to people familiar with the matter.

Per the sources, Taiwan-based Foxconn is also assisting with the project, and Apple has enlisted the help of two of its most important suppliers, Taiwan Semiconductor Manufacturing Co and Sony, to develop micro OLED displays for the device.

Luxshare Precision, Foxconn, TSMC, and Sony did not respond immediately to  request for comment.

According to previous reports, Apple's headset will cost around $3,000 and will be unveiled at this year's spring event.

According to Nikkei, the company hopes to lower the price of the device's second generation.

The device will compete with Meta Platforms' Quest Pro virtual and mixed-reality headset, which was released late last year for $1,500.