Apple's Vision Pro Production Slashed as Demand Falls Short: Report

By Leira Aquino

Apr 24 2024, 22:29 PM EDT

Apple Vision Pro Sold Out After Preorders, But Demand Could Quickly Fizzle Out, Top Analyst Warns — Apple is adjusting its shipment expectations for the Vision Pro headset due to lower demand than anticipated, according to reports. Justin Sullivan/Getty Images

Tech giant Apple is reportedly scaling back its shipment forecast for the Vision Pro headset due to weaker-than-expected demand, according to a report.

The move comes amidst a competitive market and challenges specific to Apple's latest offering in the mixed reality space.

Apple Adjusts Vision Pro Shipment Outlook

Apple analyst Ming-Chi Kuo, known for his insights into Apple's supply chain, revealed that Apple has adjusted its Vision Pro shipment expectations downward, The Independent reported.

Kuo's sources indicate that Apple now anticipates selling between 400,000 to 450,000 units in 2024. This significant reduction contrasts with earlier industry projections, which Kuo stated hovered around 700,000 to 800,000 units.

Apple's decision to revise its shipment forecast hints at broader strategic adjustments within the company.

Kuo suggests that Apple may defer the release of a lower-cost mixed reality headset beyond 2025, or possibly scrap it altogether. This potential delay reflects Apple's recalibration in response to market dynamics and consumer feedback.

The Vision Pro, launched in February amid considerable anticipation, faced challenges from the outset.

Despite its technical prowess and integration with popular streaming services like Disney+ and Paramount+, criticisms about its $3,500 price tag and user experience limitations emerged early on. The lack of native support for Netflix on the device further compounded user frustrations.

Apple's Mixed Reality Strategy Shifts Send Ripples Through Tech Sector

Apple's recalibration in the mixed reality space carries broader implications for the industry.

As a trendsetter, Apple's success or setbacks often reverberate across the technology landscape, according to The Verge.

Kuo's analysis suggests that the Vision Pro's struggles may impact the adoption rates of crucial VR and AR components, such as Micro OLED displays, affecting future innovations in the sector.

While the specifics behind Apple's downward revision remain undisclosed, factors like pricing, comfort, and app ecosystem deficiencies likely contributed to the cooling demand.