What to know: 

  • Apple cuts back Vision Pro production as current supplies exceed expected sales for 2024.
  • Daily production drops from 2,000 to 1,000 units, with possible shutdown by November.
  • Company plans to focus on developing a cheaper version of the $3,500 headset.

Apple’s ambitious mixed-reality headset, the Vision Pro, appears to be hitting a rough patch as the tech giant adjusts its production strategy in response to market realities. The company has begun consolidating its retail demo spaces, a move that speaks volumes about the device’s current market position.

The numbers tell a sobering tale. While Apple’s suppliers have manufactured enough components to produce up to 600,000 headsets, market research suggests actual sales might barely reach 420,000 units by year’s end. This mismatch between supply and demand has led to warehouses bursting with unused components, with some factories having halted production as early as May due to weak sales forecasts.

Luxshare, Apple’s assembly partner, has already scaled back production significantly. The company now produces approximately 1,000 units daily, half of its peak capacity, and might need to wind down operations by November according to The Information. 

Tim Cook, Apple’s CEO, has taken a pragmatic stance on the situation, acknowledging that the Vision Pro was never intended to be a mass-market product due to its premium $3,500 price tag. He positions it as a device for early adopters who want to have tomorrow’s technology today.

Looking ahead, Apple appears to be pivoting its strategy. Rather than pursuing a major refresh of the current model, the company is reportedly focusing on developing a more affordable version of the headset. Additionally, plans are in motion for a 2025 update featuring a faster M5 chip, suggesting Apple remains committed to the product line despite current challenges.

The Vision Pro’s journey serves as a reminder that even tech giants must sometimes adjust their sails when market winds don’t blow as expected. While the product represents groundbreaking technology, its current production adjustment appears to be a strategic pause rather than a full retreat from the mixed-reality market.