Apple has turned to Luxshare, its long-term Chinese supplier, to help it develop its first generation augmented reality devices, Nikkei Asia reported on Thursday. The Shenzhen-based company has already taken over Apple’s AR development team in Shanghai, which was formerly part of Taiwanese firm Pegatron, the outlet said, citing five sources. Bloomberg previously wrote that Apple’s first headset was set to cost about $3,000 and be rolled out at this year’s spring event. Foxconn, the iPhone maker’s main manufacturing partner, is also reportedly working on a low-cost second-generation version of the headset in parallel, with the aim of bringing down overall costs for the tech giant by automating mass production and increasing capacity. [Nikkei Asia]