Apple Cuts Vision Pro Production Amid Disappointing Demand: Report

Apple Vision Pro is expected to launch outside the US later in 2024.

Apple's highly anticipated Vision Pro mixed reality headset appears to be struggling to gain traction with consumers, prompting the Cupertino giant to dramatically scale back production plans, according to renowned Apple analyst Ming-Chi Kuo.

When Apple launched the $3,499 Vision Pro in the US earlier this year, the company likely expected the cutting-edge spatial computer to be a hit. However, Kuo reports that weaker-than-expected demand has forced Apple to slash its 2024 shipment estimates for the device from a consensus of 700,000-800,000 units down to just 400,000-450,000 units.

"Apple has cut its 2024 Vision Pro shipments to 400–450k units (vs. market consensus of 700–800k units or more)," Kuo wrote in a post on his Medium blog. "Apple cut orders before launching Vision Pro in non-US markets, which means that demand in the US market has fallen sharply beyond expectations," he added.

According to Kuo, the dismal US sales performance has made Apple "more conservative" about predicted demand for the Vision Pro's upcoming international rollout later this year. While Apple plans to launch the Vision Pro in China and other markets, it may now take a slightly less optimistic view of adoption rates overseas following the reportedly frosty American reception.

Kuo believes 2024's Vision Pro volumes will outpace 2025 shipments year-over-year as consumer interest declines. "Apple now expects Vision Pro shipments to decline YoY in 2025," he stated.

Kuo also claims Apple is "reviewing and adjusting" plans for its next mixed reality device, raising the possibility that a second-generation Vision Pro successor may not arrive in 2025, as previously rumoured.

"The challenge for Vision Pro is to address the lack of key applications, price, and headset comfort without sacrificing the see-through user experience," Kuo writes.

If Kuo's projection proves accurate, the Vision Pro's sluggish commercial performance could represent a rare misfire for the company that pioneered mainstream smartphone, tablet and wearable adoption. Once regarded as a potential keystone of Apple's much hyped mixed reality ecosystem, the expensive Vision Pro may become an overpriced footnote instead.

All eyes are now on Vision Pro's global launches later in 2024. Whether it can rebound and revive the company's augmented reality ambitions remains to be seen.