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Apple Cutting Vision Pro Production Amid Sluggish Sales, Consumer: Too Expensive!

by Raidi
2024-10-24
in Tech & Science
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Apple Vision Pro

Apple Vision Pro (Pinterest)

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Jakarta, Indonesia Sentinel — Less than a year after its launch, Apple has reportedly decided to scale back production of its Vision Pro mixed reality headset. According to reports from The Information, the tech giant began reducing production mid-year and may even halt manufacturing entirely by the end of next year, as reported by Reuters on Thursday, October 24.

The decision comes as sales for the high-end headset have slumped, with analysts attributing the decline to its hefty price tag and competition from more affordable alternatives, such as Meta Platforms’ Quest 3.

According to the same report from The Information, suppliers had initially prepared components to produce between 500,000 and 600,000 units of the Vision Pro. However, some factories stopped producing Vision Pro components as early as May due to Apple’s downgraded sales forecasts, leaving warehouses stocked with tens of thousands of undelivered parts.

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Apple has also reportedly informed Luxshare, the Chinese company responsible for assembling the Vision Pro, that it may need to cease production in November.

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Currently, Luxshare is producing around 1,000 headsets per day, which is half of the peak production rate. However, Apple has not completely ruled out resuming production should sales improve, as the assembly lines have yet to be dismantled.

In a further sign of caution, Apple has suspended development of the second-generation Vision Pro for at least a year, shifting focus toward creating a more affordable headset. Notably, Apple has instructed suppliers to prepare for the production of four million units of the lower-cost version over its product life cycle. This is half the total production estimate for the original Vision Pro, signaling that expectations for the cheaper model are also modest.

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The Apple Vision Pro, first introduced in early 2023, officially launched in the U.S. in February 2024. However, despite Apple’s hopes to dominate the growing market for mixed reality devices, the Vision Pro has struggled to gain traction.

The primary hurdle appears to be its high price point, with the headset costing a steep $3,500, substantially more than competitors like Meta’s Quest 3, which retails for just $500.

Reports emerged in June that Apple was working on a more affordable version of the Vision headset, which would offer fewer features than the high-end model. The lower-cost Vision is expected to launch before the end of 2025.

Apple introduction of the Vision Pro to global markets earlier this year was part of a broader strategy to drive demand and stay ahead of competitors by integrating artificial intelligence into its flagship devices. However, with its high price, Apple face the challenge of convincing consumers that these headsets are essential in their everyday lives.

 

(Raidi/Agung)

Tags: appleHeadsetMixed Reality HeadsetVision Pro
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