Apple Halts Vision Pro Production Amid Weak Demand and Shifts Focus to Cheaper Model
1min read Apple has significantly reduced production of its Vision Pro headset and may completely halt the current version's manufacturing by the end of 2024, according to The Information. The cutback in production reportedly began in early summer, indicating that Apple likely has sufficient inventory to meet the device's demand for its remaining lifecycle.
The reduction is reportedly a response to weak demand for the Vision Pro, attributed to limited content and high pricing. Suppliers have produced enough components for between 500,000 to 600,000 units, yet sluggish sales forecasts have led some factories to pause production since May, leaving many parts undelivered.
Apple has informed its Chinese assembler, Luxshare Precision, that production might cease by November. Currently, about 1,000 Vision Pro units are produced daily, half of its peak output. However, Apple retains the ability to resume production if sales improve, as manufacturing lines remain intact.
Development of the second-generation Vision Pro has been postponed at least a year as Apple shifts focus to creating a more affordable headset, potentially priced at $2,000. Suppliers have been asked to prepare for the production of four million units over the product's lifecycle, half the number initially expected for the Vision Pro, signaling lower sales expectations for the cheaper model.
While work on the second generation has stalled, Apple may release incremental updates with minor design changes, such as chip upgrades, to utilize existing excess components in the supply chain.
