Apple cuts Vision Pro headset production due to low demand: Report

Apple's ambitious foray into the mixed reality market with the Vision Pro headset has hit a snag.

As per the latest reports, the company is scaling back its shipment forecast for the rest of the year due to low demand.

Lower sales than expected

Ming-Chi Kuo, a prominent Apple analyst, revealed that Apple cut orders for the Vision Pro even before it launched outside the US. This indicates a significant drop in anticipated demand for the high-end headset.

Kuo's sources estimate that Apple now expects to sell only around 400,000 to 450,000 units in 2024, a stark contrast to the initial "market consensus" of 700,000 to 800,000 units.

Factors behind the decline

The $3,500 price tag and the lack of compelling use cases for the Vision Pro are likely contributing factors to the lower-than-expected sales.

While early adopters have praised the headset's technical prowess, it seems the initial buzz hasn't translated into sustained demand, particularly beyond the return period.

Impact on mixed reality market

Apple's Vision Pro was expected to be a trendsetter in the nascent mixed reality market. However, the disappointing sales performance could have broader implications for the industry.

Kuo expresses concerns that the lower demand for VR and AR-specific components, like the Micro OLED displays used in the Vision Pro, may not reach the adoption rate needed for mass production and wider integration into other devices.

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