Apple sharply cuts back on Vision Pro production, The Information reports

investing.com 23/10/2024 - 15:06 PM

Apple's Vision Pro Production Cuts

(Reuters) – Apple (NASDAQ:AAPL) has significantly reduced production of its Vision Pro mixed reality headset since early summer and may halt the existing version by year-end, according to The Information, which cited sources involved in component manufacturing.

Initial enthusiasm for sales after its February launch has faded, primarily due to the high price and competition from cheaper alternatives like Meta Platforms (NASDAQ:META)'s Quest.

The Vision Pro retails for about $3,500 in the U.S., while Meta's Quest 3 comes in at approximately $500. The Information report mentions that suppliers have produced enough parts for 500,000 to 600,000 units, but one employee noted that their factory ceased production of Vision Pro components in May.

Recently, Apple has also informed its assembler, Luxshare, to potentially wind down production by November, as reported by a manufacturer employee.

Apple did not respond to a Reuters inquiry for comments. Previously, The Information reported in June that Apple aims to release a more affordable Vision product with fewer features by late 2025 and has paused work on its next high-end headset.

This year, Apple launched the Vision Pro in international markets to boost demand while simultaneously pushing to integrate artificial intelligence into its flagship mobile devices to remain competitive against rivals.




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