Tech giant Apple appears to have slashed production numbers for its highly anticipated Vision Pro headset, a device boasting nearly seven years of research and innovation. Heralded as Apple’s most consequential release since the iPhone, the reduction in production forecasts has sent shockwaves across the industry, leading to speculation about Apple’s confidence in the product.
Known for their show-stopping gadgets, Apple’s decision to downsize their Vision Pro headset production raises the critical issue – is Apple second-guessing the device’s market success?
The Vision Pro: Apple’s Inaugural Foray into Mixed Reality
Despite confirming the Vision Pro won’t hit shelves until early 2024, speculations run rampant about the reasoning behind Apple’s move to pare down its initial production plans.
The hefty $3,500 asking price goes well beyond Apple’s typical luxury pricing. This stems from the fact that the Vision Pro is a pioneering product, coupled with Apple’s investment in proprietary components created over a protracted 7-8 year period.
Additionally, the intricacies of the Vision Pro’s design present significant manufacturing challenges.
Industry observers attribute the delay more to supply chain issues rather than issues with Apple’s developer tools for Vision Pro.
Insider reports state Apple initially aimed to produce fewer than 400,000 units of Vision Pro in 2024, solely in partnership with Luxshare, a Chinese manufacturer. However, orders have been confined to just enough components for assembling between 130,000 – 150,000 units, indicating a drastic reduction from the million units initially aimed for.
Apple Aims for Vision Pro to Captivate the Wider Market
Faced with continuous setbacks and postponement of launch dates, it appears Apple is not satisfied with the production yield of flawless micro-OLEDs, a crucial element for high-quality displays, and also the most expensive.
The projected $3,500 price tag also reflects Apple’s struggle with low manufacturing yields and heightened costs due to production inefficiencies.
Elsewhere, Sony is cautiously increasing production of its mixed-reality headsets, closely observing market growth in the AR and VR sector.
To attract a broader customer base, Apple is rumored to be collaborating with Korean electronics giants Samsung and LG for a second, more accessible iteration of the headset. While still preferring to include micro-OLEDs, Apple might consider shifting to mini-LEDs to bring down costs. This, however, could mean further delays in the availability of a budget-friendly Vision Pro model.
“With the expected lean production numbers, the Vision Pro headset is likely to be swiftly snapped up through pre-orders by Apple’s wealthiest buyers and its devoted fan base. ”
Many market analysts are optimistic that Apple will expand its user base beyond 20 million within five years post-launch, leveraging its solid base of dedicated users.
