Vision Pro Headset Production Reportedly Cut Due to Falling Demand

Apple is reportedly reducing the production of its Vision Pro mixed reality headset, as the device has seen less demand than expected in the U.S., according to analyst Ming-Chi Kuo. 

The original plan was to manufacture up to 800,000 units in 2024, but this has now been reduced to 400,000 to 450,000 units. Interestingly, Apple decided to cut production before the headset was released in markets outside the U.S., suggesting a significant drop in domestic demand. 

Furthermore, due to the underwhelming performance of the Vision Pro, Kuo indicates that a planned update for the headset in 2025 could be cancelled.

According to Kuo, Apple is now expecting Year-on-Year shipments of Vision Pro to decline in 2025. He further highlighted that the challenge for the Vision Pro headet is to find key applications, balance price, and enhance headset comfort without compromising the user experience.

Despite the current niche market for Virtual Reality (VR), Kuo acknowledged that it at least offers successful applications, such as games, providing better trend visibility than Mixed Reality (MR).

Kuo also noted that the underperformance of the Vision Pro headset could affect new trends in the MR headset devices, Pancake, and Micro OLED sectors.

This development will likely influence Apple's product roadmap for head-mounted displays and potentially delay the mass production and adoption of Micro OLEDs in other small-sized consumer electronic devices.

Check out the original analytical report by Ming-Chi Kuo here and don't forget to join our 80 Level Talent platform and our Telegram channel, follow us on Instagram, Twitter, and LinkedIn, where we share breakdowns, the latest news, awesome artworks, and more.