Apple launched its first-generation mixed-reality (MR) headset, the Vision Pro, in February 2024 for $3,499.
Within one year of its launch, the Cupertino giant reportedly ceased device production following a significant decrease in demand and production cuts.
According to a new report from MacRumors, Apple started reducing the production of Vision Pro headsets in the early summer of 2024 following a reassessment of market interest in the premium device.
The high price and a limited ecosystem of software offerings contributed to this decline in demand.
The report further states that the Cupertino giant had reportedly instructed Luxshare Precision Co. Ltd., the Chinese company that assembles the headset, to wind down production completely in November, with the latter cutting its daily output to 1,000 units in October, which is a 50% decrease from the company’s peak rate.
It is estimated that the company has accumulated enough inventory to fulfill the projected demand for Vision Pro through the end of 2025.
MacRumors reports that warehouses are stocked with tens of thousands of undelivered components, indicating a strategic decision made by Apple to manage inventory levels and avoid surplus.
Since Apple has not yet dismantled the lines for Vision Pro production, Luxshare may still be able to resume the production lines if the demand for the device picks up.
However, the likelihood of that happening is extremely low, considering its sluggish sales and minimal interest in the market.
Launched at a steep price of $3,499, Apple CEO Tim Cook admitted that the Vision Pro was an “early adopter” product aimed at tech enthusiasts rather than the broader market.
Despite the slowdown in production, Apple is expected to continue refining its mixed-reality strategy, shifting its focus to developing a more affordable mixed-reality headset.
MacRumors reports that suppliers have been asked to transition to a production target of up to four million units of this lower-cost device throughout its lifecycle, which is half the original Vision Pro’s target.
Various reports also suggest that Apple has suspended work on the second-generation Vision Pro for at least a year to focus on this cheaper model, which may be released in the next few years.
However, Apple may still release an incremental update to the first-generation Vision Pro, featuring limited design changes, an upgraded M5 chip, and improved intelligence capabilities, enhancing performance and offering more advanced AR and VR capabilities.
MacRumors said this updated device could launch sometime between late 2025 and early 2026.
