Apple Inc. is reportedly reducing its production targets for the highly anticipated Vision Pro headset due to manufacturing complications related to the device’s intricate design, according to a report by the Financial Times.
Sources familiar with the matter revealed that Apple now plans to manufacture fewer than 400,000 units of the $3,499 headset in 2024. Luxshare Precision Industry Co., the Chinese firm responsible for initial assembly, is said to be facing difficulties in the production process. Additionally, two China-based suppliers of components disclosed that Apple has requested parts for only 130,000 to 150,000 units in the first year. Furthermore, plans for a more affordable version of the headset have been delayed.
Following the news, Luxshare’s stock experienced a slight dip in earlier gains but remained up by approximately 3.8% on Monday in Shenzhen. Meanwhile, Apple’s shares were down around 0.9% at $192.24 at 11:46 a.m. in New York.
Bloomberg Intelligence analysts Anurag Rana and Andrew Girard commented on the development, stating that it wasn’t surprising given that the Vision Pro headset is a first-generation product. Their original projection anticipated 500,000 units sold in the first year, only half of Apple’s initial expectation, considering the headset’s price tag of $3,500. They further noted that the product is unlikely to have a significant financial impact over the next three years.
The Vision Pro headset, unveiled last month, represents Apple’s latest endeavor to sustain sales momentum and drive the mixed-reality industry into the mainstream market. Resembling advanced ski goggles, the device will feature its own operating system, visionOS, and a dedicated App Store. It is scheduled for an early release next year in the United States, with availability in other regions to follow.
However, the current projections represent a substantial reduction from Apple’s previous internal sales target of 1 million units within the first 12 months, as reported by the Financial Times.
One of the major obstacles in production lies in creating high-resolution inward displays while simultaneously projecting the wearer’s vision to the outside world, as outlined in the report. Apple is also collaborating with Korean display makers to develop a more affordable version of the headset, according to individuals with direct knowledge cited by the Financial Times.
Despite the challenges faced by Apple in manufacturing the Vision Pro headset, the company recently achieved a significant milestone as its market value surpassed $3 trillion, with investors continuing to show strong interest in the tech giant.
As Apple works through the production hurdles, the company remains focused on delivering innovative products and is concurrently preparing for the release of new iPhones and Macs following the debut of the Vision Pro headset, signifying its commitment to sustaining its sales momentum in the market.
