In a surprising turn of events, Apple has reportedly halted production of its Vision Pro headset. This decision comes after disappointing sales and a growing inventory of unsold units. Despite expanding availability to key markets in Europe and Asia, the HKD$27,999 โspatial computerโ has failed to resonate with consumers. This has left Apple grappling with a surplus of unused components and uncertainty about the future of its mixed-reality ambitions.
Read More: Did Apple Deliver? Our Take On The Latest iPhones, Watches, And AirPods
The Vision Proโs Bumpy Launch And Production Woes
Initially touted as a revolutionary leap in augmented and virtual reality, the Vision Pro promised to blend digital content with real-world environments. Users were to interact with the device through eye tracking, voice commands, and hand gestures, enjoying โspatial gamesโ like โWhat the Golf?โ and โSuper Fruit Ninjaโ. Nonetheless, despite the initial excitement surrounding its January 2024 launch, sales figures have fallen short of expectations. This has led Apple to significantly reduce production and, according to reports from The Information, plan to completely cease production of the first-generation headset by early 2025.
Apple’s initial projection of one million Vision Pro units sold in the first year was significantly scaled back, with the company later halving its target. By late 2024, manufacturers had supplied components for 500,000 to 600,000 headsets, yet actual sales reached only around 370,000 units. This left tens of thousands of parts languishing in warehouses. Luxshare Precision, Apple’s primary assembly partner in China, initially produced 2,000 units daily at its peak. However, production gradually slowed, reaching just 1,000 units per day by October. In November, Apple reportedly instructed Luxshare to cease production entirely. Signs of slowing production emerged earlier. Some suppliers reportedly paused manufacturing as early as May, with certain factories even shuttering entire component lines. Despite this, the existing production infrastructure remains intact, leaving open the possibility of restarting production should demand unexpectedly surge.
Apple Reconsiders Its Next Move
The Vision Pro’s steep price tag positioned it as a luxury product for early adopters, rather than a device for the mass market. While Apple has a history of transforming niche products into mainstream successes, the headset’s limited content ecosystem has proven to be a significant obstacle. Unlike the iPhone or AirPods, which revolutionised their respective categories, the Vision Pro has struggled to offer a compelling value proposition that justifies its premium cost.
Reports suggest that Apple has paused development on the second-generation Vision Pro to prioritise a more affordable alternative. This new model is expected to feature more modest specifications and could reuse components from the original headset to reduce costs. Production targets for this lower-cost model are also significantly lower, with estimates suggesting a potential production run of four million units over its lifespan โ half the original target for the Vision Pro. Speculation regarding a potential release date for the next iteration varies widely, with predictions ranging from late 2025 to early 2026. Rumours suggest that future versions may introduce incremental upgrades, such as a next-generation M5 chip, as Apple re-evaluates its approach to mixed-reality technology.
Can Apple Revive Its AR/VR Dream?
The Vision Pro’s struggles highlight the broader challenges facing the widespread adoption of mixed-reality devices. High costs, limited content libraries, and a lack of compelling use cases continue to deter consumers from embracing AR/VR technology. Although, given Apple’s history of overcoming initial slow starts โ as seen with the Apple Watch โ cautious optimism remains. Whether the Vision Pro will follow a similar path of reinvention or fade into tech history remains uncertain.
As reports of halted production circulate, the future of Apple’s AR/VR ambitions hangs in the balance. Both fans and critics are left pondering a crucial question: Can Apple successfully redefine mixed reality, as it did with smartphones and wearables, or is the Vision Pro destined to be remembered as a bold but ultimately flawed experiment?
Catherine Pun
A Hong Kong native with Filipino-Chinese roots, Catherine infuses every part of her life with zest, whether sheโs belting out karaoke tunes or exploring off-the-beaten-path destinations. Her downtime often includes unwinding with Netflix and indulging in a 10-step skincare routine. As the Editorial Director of Friday Club., Catherine brings her wealth of experience from major publishing houses, where she refined her craft and even authored a book. Her sharp editorial insight makes her a dynamic force, always on the lookout for the next compelling narrative.
