A recent report from The Information reveals that Apple has drastically cut back on the production of its Vision Pro mixed reality headsets, with potential plans to halt manufacturing as early as November. This news follows an interview with Apple CEO Tim Cook, who admitted that the headset is having difficulty gaining traction in the market.
With a price tag of $3,500, the Vision Pro is currently marketed as a luxury item for early adopters, rather than a product aimed at the mass market, indicating a limited target demographic.
Despite the reduction in production, the report suggests that this move may be more about managing inventory than a direct response to disappointing sales. Apple has reportedly paused work on a second-generation Vision Pro, which implies that initial consumer interest has not met expectations. Nevertheless, there are plans for a more affordable version of the headset, rumored to be priced around $2,000, though it remains uncertain whether this lower price point will effectively attract consumers.
Supplier reports indicate that Apple has enough components on hand to produce between 500,000 and 600,000 Vision Pro units. However, Luxshare, a major supplier, has not manufactured new parts since May and is currently operating at just half of its peak production capacity. Apple has sold approximately 370,000 headsets this year but is expected to sell only an additional 50,000 units before the end of the year. This raises concerns about the overall market performance of the Vision Pro.
In comparison, Meta has launched the Meta Quest 3S, an entry-level headset priced at $299, which undercuts the Vision Pro significantly. The more advanced Meta Quest 3 is priced at $499, making it a much more accessible option for a wider audience.
Meta’s competitive pricing strategy appears to be successful, with reports indicating that nearly 3 million Quest 3 units were sold in the first nine months after its launch. This stark price difference highlights the challenges Apple faces in appealing to a broader consumer base with the Vision Pro.
Tim Cook’s emphasis on quality over speed in product development is central to Apple’s strategy. In his interview, he reiterated the company’s commitment to being the best rather than the first, highlighting the importance of refining technology before release.
However, the current production cuts and shifts in strategy raise questions about the future of the Vision Pro. The anticipated launch of a lower-cost model could play a critical role in determining whether the headset gains wider acceptance among consumers.
