Investing.com -- Apple has significantly scaled back production of its Vision Pro mixed reality headset and may stop manufacturing the current version altogether by the end of the year, according to a report by The Information on Wednesday.
The publication, citing sources directly involved in the supply chain, revealed that Apple (NASDAQ:AAPL) has accumulated enough inventory to meet current demand, indicating production may not need to continue for now.
The decision aligns with Apple's shift in focus toward developing a more affordable version of the Vision Pro, expected to launch by late 2025.
As a result, the company has paused work on a second-generation high-end model for at least a year, the report states.
Despite Apple’s ambitions, the Vision Pro—priced at $3,500—has struggled to gain traction, hindered by its steep price and limited availability of apps.
Suppliers told The Information they have already produced components for around 500,000 to 600,000 units, but warehouses remain stocked with tens of thousands of unsold parts due to weaker-than-expected forecasts.
Production at Luxshare, the Chinese manufacturer assembling the Vision Pro, has also slowed. Assembly rates are said to have dropped from around 2,000 units daily to approximately 1,000 units. Luxshare has been informed that production could be wound down by November.
The Information notes that Counterpoint Research estimates Apple will sell around 420,000 Vision Pro units by the end of 2024—far below Meta’s success with its Quest devices, which are priced much lower.
Although the development of future high-end Vision products is delayed, The Information reports Apple may release incremental updates by upgrading internal components, such as processors, without changing the device’s design.
Apple CEO Tim Cook recently acknowledged that the Vision Pro isn’t intended for mass-market consumers but remains attractive to early adopters. "Fortunately, there’s enough people who are in that camp that it’s exciting," Cook told The Wall Street Journal.