Apple Scales Back Vision Pro Production

Investing.com — Apple has significantly scaled back production of its Vision Pro mixed reality headset and may cease manufacturing the current version by year-end, according to a report by The Information on Wednesday.

The publication, citing sources in the supply chain, revealed that Apple (NASDAQ:AAPL) has enough inventory to meet current demand, suggesting production may not be necessary for now.

This decision aligns with Apple's pivot towards developing a more affordable Vision Pro version, expected to launch by late 2025.

Consequently, work on a second-generation high-end model has been paused for at least a year, according to the report.

Despite Apple's goals, the Vision Pro—priced at $3,500—has faced challenges gaining traction due to its high cost and limited app availability.

Suppliers informed The Information that they produced components for approximately 500,000 to 600,000 units, but warehouses are filled with tens of thousands of unsold parts due to weaker-than-expected forecasts.

Production at Luxshare, the Chinese manufacturer assembling the Vision Pro, has also decelerated, with assembly rates dropping from about 2,000 units daily to roughly 1,000. Luxshare has been advised that production may be wound down by November.

The Information notes that Counterpoint Research estimates Apple will sell around 420,000 Vision Pro units by the end of 2024—significantly trailing Meta’s success with its competitively priced Quest devices.

Although the development of future high-end Vision products is delayed, The Information reports that Apple may release incremental updates by upgrading internal components, such as processors, without altering the device’s design.

Apple CEO Tim Cook recently acknowledged that the Vision Pro isn’t aimed at the mass market but remains appealing to early adopters. "Fortunately, there’s enough people who are in that camp that it’s exciting," Cook told The Wall Street Journal.