Apple May Halt Vision Pro Production Due to Low Demand
The Information has reported that Apple might cease production of its Vision Pro mixed-reality headset as early as next month due to poor demand. Some Asian suppliers have already decreased or halted production of headset components since the summer. Furthermore, the development of the next Vision Pro model has been postponed, while a more affordable headset is expected to hit the retail market by the end of 2025.
The first version of the Vision Pro has seen low demand due to its high price and the limited number of apps available for it. Employees at three Vision Pro suppliers that provide a variety of electrical and mechanical components have revealed that they have manufactured enough components for between 500,000 and 600,000 headsets so far.
One of the employees stated that their factory stopped producing Vision Pro components in May due to Apple's weak forecasts, leaving their warehouse filled with tens of thousands of undelivered parts.
Apple's Communication to Luxshare
Recently, Apple has informed Luxshare, the company responsible for the final assembly of the Vision Pro, that it might need to stop its manufacturing in November, according to an employee at the Chinese manufacturer. Luxshare is currently producing around 1,000 Vision Pro units a day, down from a peak of around 2,000 units a day. The company has assembled a total of between 500,000 and 600,000 headsets since production started last year, ahead of its February release in the U.S.
Apple's entry into the mixed-reality headset market with its $3,500 Vision Pro seems ill-timed, considering the financial pressure on many low- to mid-tier consumers. High inflation and increased interest rates, primarily due to failed economic policies, have left millions of Americans struggling to afford basic expenses like rent, groceries, car payments, insurance, and phone bills.
Lack of Apps for Vision Pro
The lack of success of the Vision Pro is not a surprise. A note from the Wall Street Journal earlier this month highlighted the poor demand for the headset, indicating no 'killer app' anytime soon. There has been a significant decrease in new apps being added to the Vision Pro every month. Only 10 apps were added to the Vision App Store in September, a significant decrease from the hundreds released in the first two months of the device's launch, according to analytics firm Appfigures.
Appfigures has counted around 1,770 apps available for the Vision Pro in the App Store as of September. Only 34% of those apps are specifically designed for the Vision Pro, while the rest are versions of existing Apple apps that have added Vision Pro functionality.
Apple claimed in August that there are more than 2,500 apps built for the Vision Pro. Appfigures stated that the discrepancy between these two figures could be partly due to some apps not being used enough to register on usage charts, making them difficult for the analytics firm to detect.
A visualization from the Wall Street Journal shows a significant decrease in the number of new apps released for Vision Pro every month since its launch.
Vision Pro's Future
The success of the Vision Pro depends on a cheaper version, as consumers are balking at the $3,500 price tag. From the beginning, the price of Apple's Vision Pro was met with audible groans. The AI-enabled iPhone 16 was another bust for Apple.
Bottom Line
Apple's Vision Pro mixed-reality headset seems to be struggling in the market due to its high price and lack of available apps. The company's decision to potentially halt production next month is a testament to the weak demand for the product. However, the future could hold a more affordable version of the headset. What are your thoughts on this development? Feel free to share this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
Apple May Halt Vision Pro Production Due to Low Demand
The Information has reported that Apple might cease production of its Vision Pro mixed-reality headset as early as next month due to poor demand. Some Asian suppliers have already decreased or halted production of headset components since the summer. Furthermore, the development of the next Vision Pro model has been postponed, while a more affordable headset is expected to hit the retail market by the end of 2025.
The first version of the Vision Pro has seen low demand due to its high price and the limited number of apps available for it. Employees at three Vision Pro suppliers that provide a variety of electrical and mechanical components have revealed that they have manufactured enough components for between 500,000 and 600,000 headsets so far.
One of the employees stated that their factory stopped producing Vision Pro components in May due to Apple's weak forecasts, leaving their warehouse filled with tens of thousands of undelivered parts.
Apple's Communication to Luxshare
Recently, Apple has informed Luxshare, the company responsible for the final assembly of the Vision Pro, that it might need to stop its manufacturing in November, according to an employee at the Chinese manufacturer. Luxshare is currently producing around 1,000 Vision Pro units a day, down from a peak of around 2,000 units a day. The company has assembled a total of between 500,000 and 600,000 headsets since production started last year, ahead of its February release in the U.S.
Apple's entry into the mixed-reality headset market with its $3,500 Vision Pro seems ill-timed, considering the financial pressure on many low- to mid-tier consumers. High inflation and increased interest rates, primarily due to failed economic policies, have left millions of Americans struggling to afford basic expenses like rent, groceries, car payments, insurance, and phone bills.
Lack of Apps for Vision Pro
The lack of success of the Vision Pro is not a surprise. A note from the Wall Street Journal earlier this month highlighted the poor demand for the headset, indicating no 'killer app' anytime soon. There has been a significant decrease in new apps being added to the Vision Pro every month. Only 10 apps were added to the Vision App Store in September, a significant decrease from the hundreds released in the first two months of the device's launch, according to analytics firm Appfigures.
Appfigures has counted around 1,770 apps available for the Vision Pro in the App Store as of September. Only 34% of those apps are specifically designed for the Vision Pro, while the rest are versions of existing Apple apps that have added Vision Pro functionality.
Apple claimed in August that there are more than 2,500 apps built for the Vision Pro. Appfigures stated that the discrepancy between these two figures could be partly due to some apps not being used enough to register on usage charts, making them difficult for the analytics firm to detect.
A visualization from the Wall Street Journal shows a significant decrease in the number of new apps released for Vision Pro every month since its launch.
Vision Pro's Future
The success of the Vision Pro depends on a cheaper version, as consumers are balking at the $3,500 price tag. From the beginning, the price of Apple's Vision Pro was met with audible groans. The AI-enabled iPhone 16 was another bust for Apple.
Bottom Line
Apple's Vision Pro mixed-reality headset seems to be struggling in the market due to its high price and lack of available apps. The company's decision to potentially halt production next month is a testament to the weak demand for the product. However, the future could hold a more affordable version of the headset. What are your thoughts on this development? Feel free to share this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
