In a surprising development, Apple has reportedly scaled back the manufacturing of its highly anticipated Vision Pro headset, according to multiple sources connected with the parts production. This update comes shortly after CEO Tim Cook acknowledged in a recent interview that the $3,500 price tag for the Vision Pro is not conducive to mass-market appeal. He noted, “Obviously I’d like to sell more,” indicating the company’s awareness of the headset’s limited reach due to its high cost.
The latest report from The Information highlights that the company tasked with the final assembly of the Vision Pro, Luxshare, has been instructed to prepare for a potential wind down of production in November. This decision appears to align with earlier reports suggesting a strategic pivot by Apple to develop a more budget-friendly version of the headset, slated for release as soon as next year.
Analyst Ming-Chi Kuo had previously forecasted a reduction in shipment estimates for the Vision Pro, projecting sales figures between 400,000 and 450,000 units for 2024. A Luxshare employee disclosed that the assembly line has produced between 500,000 to 600,000 headsets since production began last year, potentially leaving Apple with adequate units and components to navigate any immediate demands.
While certain production lines may slow down, there is a possibility for a ramp-up if an unexpected surge in demand arises. Furthermore, speculation surrounds the next iteration of the headset, which may incorporate some of the same components, albeit with an upgraded processor. Cook remarked on the Vision Pro’s current market positioning, promoting it as an “early-adopter product” tailored for those eager to experience tomorrow’s technology today. This statement suggests that while there is an interest from a select group of consumers, a significant portion of early adopters might be holding out for a more affordable alternative.
Apple’s shift in approach reflects broader market dynamics, as consumers increasingly prioritize affordability in their tech purchases, particularly for high-end devices like headsets. The Vision Pro, with its innovative features and cutting-edge design, represents a groundbreaking leap in augmented reality; however, its steep price remains a formidable barrier for mass adoption. As Apple navigates these challenges, the tech giant is likely to focus not just on the existing Vision Pro model, but also on creating a product line that resonates more significantly with everyday consumers.
