Decline in Production of Apple’s Vision Pro: What You Need to Know
Recent indications suggest that Apple has halted the production of its first-generation Vision Pro headset due to diminishing consumer interest and earlier production curtailments.
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Production Plans in Flux
In a October report by The Information’s Wayne Ma, it was highlighted that Apple swiftly scaled back Vision Pro manufacturing as preparations were underway to potentially discontinue the current model by the end of next year. Given that we’re approaching year-end, it seems highly probable that new orders for the device may be permanently ceased.
Insights from Industry Sources
This reduction in production seemed to have started around early summer according to various industry insiders involved with component sourcing for the headset. This implies that Apple feels secure with an inventory level sufficient enough to satisfy consumer demand until at least 2025. Historically speaking, it’s become somewhat routine for Apple to roll back production on models experiencing lackluster sales—similar occurrences were noted with devices like the iPhone SE.
The Root Causes of Weak Demand
The lukewarm reception towards Vision Pro is largely attributed to its hefty price tag and limited content availability. Suppliers reportedly managed their output effectively and amassed parts adequate for assembling between half a million and six hundred thousand units. Specific factories even paused their component production as early as May amid Apple’s pessimistic sales outlooks; warehouses now contain a significant backlog of undelivered parts awaiting shipment.
A Shifting Strategy with Luxshare
Citing sources familiar with operations, reports reveal Apple notified Luxshare—its assembly partner based in China—to anticipate winding down operations by November. As of October, Luxshare was producing about one thousand headsets per day—a stark decrease from peak levels reached previously. Should market conditions improve though, there remains flexibility as these assembly lines are yet to be dismantled entirely.
Future Projects on Hold or Redirected?
Additively, Apple’s commitment towards pursuing development on an anticipated second-gen Vision Pro has apparently been stalled for at least one year while they shift focus toward creating a more affordable headset variant. Suppliers have been advised to gear up for producing up four million units throughout this future product’s lifecycle—significantly lower than expectations set forth initially regarding device quantities related only to the original Vision Pro series.
The Price Dilemma Explained
The steep entry price point set at $3,499 alongside a struggling content library appears detrimental; indeed CEO Tim Cook characterized this offering primarily aimed at “early adopters,” rather than catering broadly across regular consumers who might seek enhanced technological experiences without luxury constraints.
Pavement Towards Incremental Updates?
While initial development efforts surrounding what could be deemed “second generation” products lagged behind expectation timelines dramatically conflicting reports indicate some plans could involve updates featuring minimal changes but improvements such as chip upgrades instead—as corroborated by notable analysts including Kuo and Bloomberg’s Mark Gurman touting prospects involving M5 chip integration alongside functional benefits via “Apple Intelligence.” These enhancements could roll out between late fifteenth month(s)—possibly extending into early subsequent calendar years still leveraging many components sourced from existing inventory portfolios accumulated through previous supply chains established via earlier generations produced continuously over time frames mentioned herein above discussions thereof.
