Apple Reduces Vision Pro's Production

Apple has reduced production of its Vision Pro mixed reality headset and may halt the manufacturing of the current version by the end of the year, according to a report from The Information. The company’s move comes after sales for the USD 3,500 headset have declined, impacted by its high price and increased competition from cheaper alternatives like Meta’s Quest 3.

Apple's Vision Pro, introduced in February 2024 with much fanfare, has seen a sharp drop in demand since the initial enthusiasm faded. The mixed reality headset, which integrates virtual reality (VR) and augmented reality (AR) technology, has struggled to attract widespread adoption, mainly due to its high price point of around USD 3,500 in the US by contrast, Meta’s Quest 3 headset, a significant competitor, retails for just USD 500, offering a more affordable option for consumers interested in immersive experiences.

According to employees involved in Vision Pro’s production, Apple has scaled back production efforts since early summer. Suppliers have reportedly produced enough components to build only 500,000 to 600,000 units, and one supplier even suspended component production in May. The iPhone maker has recently informed Luxshare, the device’s assembler, that it may need to wind down production as early as November, the report added.

Competitive Pressures And Market Adjustments

Apple’s reduction in Vision Pro production comes amidst fierce competition in the mixed reality and VR space, with Meta continuing to dominate with more cost-effective alternatives. In addition to introducing its Quest 3 headset, Meta has been developing new technologies, including holographic AR glasses, which further challenge Apple’s market position.

Apple is reportedly reconsidering its strategy for the Vision Pro line. A June report from The Information suggested that Apple had been working on a more affordable version of its mixed reality product with fewer features, potentially set for release before the end of 2025. This shift may allow the company to reach a broader consumer base and better compete with lower-cost options in the market.