Apple Halts Vision Pro Headset Production

Apple Inc. has reportedly halted production of its much-anticipated Vision Pro headset, which launched in 2024 but failed to meet expected sales targets. According to a report from MacRumors, Apple has been significantly scaling back the manufacturing of its mixed reality device since the summer, with plans to completely stop production by the end of the year.

Production Scale Back

Sources indicate that Apple had extended communication to Luxshare Precision Co. Ltd., the Chinese manufacturer responsible for assembling the headset, to prepare for a slowdown in production. As of October, Luxshare was producing around 1,000 units per day, a steep decline from previous peak numbers. Apple currently has an adequate inventory to satisfy any existing demand through 2025, despite projections indicating lackluster sales figures.

Expectations vs. Reality

The Vision Pro, which Apple touted as a groundbreaking advancement in spatial computing, was expected to revolutionize the tech landscape. CEO Tim Cook proclaimed during its unveiling in June 2023 that this headset would do for spatial computing what the Mac did for personal computing and the iPhone did for mobile devices. However, the reality proved less rosy.

Sales Performance

Initial pre-orders launched in January, and by the official sale date in February, there was significant optimism surrounding the product. Apple aimed to sell between 700,000 to 800,000 units within the year, with famed analyst Ming-Chi Kuo estimating sales closer to 500,000. Instead, Apple only managed to shift around 370,000 units in the first three quarters. With expectations of merely an additional 50,000 units in the fourth quarter, total sales may barely reach 420,000—a stark contrast to the massive initial sales of other flagship devices.

Comparative Sales Figures

To put this into perspective, the iPhone sold an astonishing 1.39 million units in its first year, the iPad exceeded 15 million units, and the Apple Watch reached approximately 10 million. The $3,499 price tag for the Vision Pro seems to have alienated much of Apple's core customer base, leading to diminished interest. Compounding the issue was a lack of compelling content to showcase the device's capabilities, making it hard for consumers to justify the investment.

Future of Mixed Reality at Apple

Despite these setbacks, Apple remains intent on retaining a foothold in the mixed-reality market. Rumors suggest that the company may be exploring the development of a less expensive version of the Vision Pro, aiming to attract a larger audience while continuing to refine its more premium offerings. While the current iteration may not have resonated with consumers, Apple is preparing for future iterations that could potentially better capture the market's interest.

Looking Ahead

Stay tuned for updates as Apple navigates this evolving landscape, and don’t be surprised if the tech giant bounces back with a compelling new approach!