Apple reportedly scaling back Vision Pro production amid weak demand

Apple’s $3,500 Vision Pro headset, launched in February 2023 with much fanfare, is reportedly seeing production cuts just months after its release.

The Information recently reported that Apple has scaled back production since the summer, and there are rumours that the company could halt manufacturing of the current version by year-end.

The report cited employees at Luxshare, the Chinese company assembling the device, who mentioned that production had been halved from 2,000 units per day to around 1,000, signalling a significant slowdown. The weak demand for the first version of the Vision Pro has likely influenced this decision.

The Vision Pro’s high price has been a key factor in its limited success. Developers have also been slow to adopt the platform, contributing to a lack of apps and stifling consumer interest. Counterpoint Research estimates Apple has sold just 370,000 units in the first three quarters of this year, with a modest 50,000 more expected before year-end. In contrast, Meta’s Quest series, priced much lower at $300, has sold millions in the same period, reinforcing the notion that affordability plays a major role in the mixed-reality market.

In response to this tepid reception, Apple has reportedly shifted its focus toward developing a more affordable version of the Vision Pro. Reports suggest this cheaper model could be released by 2025, marking a strategic pivot for the company. Tech analysts view the reduction in production as a logical step, allowing Apple to regroup while preparing a device with broader appeal.

The company is also rumoured to be working on several other augmented reality products, including smart glasses and AirPods with cameras, hinting at a broader commitment to AR and mixed reality despite the Vision Pro's early struggles.

Apple's strategy for the Vision Pro was never intended to capture the mass market from the outset. CEO Tim Cook described it as a product for “people who want tomorrow’s technology today,” acknowledging that its steep price would limit its appeal to early adopters. However, Analysts believe that future versions, including a lower-cost headset with a more refined form factor, could eventually expand the audience for Apple’s AR products.

Despite the current challenges, Apple remains invested in augmented reality, working toward more accessible products that could help it better compete with companies like Meta. While the Vision Pro's initial version may not have lived up to expectations, Apple’s ongoing development in the AR space suggests the company is far from giving up on the technology. Its future success may depend on delivering more affordable, practical devices that appeal to a wider range of consumers.