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Low demand, high price, Apple would bet on a cheaper headset

Apple has abruptly reduced production of the Vision Pro headset and could completely stop manufacturing the current version of the device by the end of 2024, the site reports The Information.

Citing several people “directly involved” in manufacturing the helmet’s components, the report said the reduction in production began in early summer. This indicates that Apple now has enough Vision Pro units in its inventory to meet demand for the remainder of the device’s life until next year.

Anemic sales

The Vision Pro reportedly saw low demand due to insufficient content and its high price. The Information says Vision Pro suppliers have now produced enough components for 500,000 to 600,000 headsets. Some factories suspended production of Vision Pro components as early as May due to Apple’s low sales forecasts, and warehouses are still filled with tens of thousands of undelivered parts.

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Apple

Apple reportedly recently informed Luxshare, a Chinese company that assembles the Vision Pro, that it may have to reduce production in November. Luxshare currently manufactures around 1,000 Vision Pro headsets per day, half of what was produced at its peak. Apple will still be able to resume production of Vision Pro if sales pick up, as the production lines are not yet to be dismantled.

A cheaper helmet instead of a second generation Vision Pro

Additionally, Apple has apparently suspended work on the second generation Vision Pro for at least a year to focus on developing a less expensive headset. Interestingly, Apple has asked its suppliers to prepare to manufacture four million low-cost headsets over the life of the future product. That figure is half the total number of Vision Pros Apple has asked its suppliers to produce, suggesting sales expectations are even lower for the cheaper headset.

Low demand, high price, Apple would bet on a cheaper headset

Apple

Although Apple’s work on the second generation of the Vision Pro has apparently stalled, there are indications that the company may release “a rolling update of the product with limited changes to its physical design,” as an update. at chip level. This would allow Apple to utilize the considerable number of excess components in its supply chain.

Low demand, high price, Apple would bet on a cheaper headset

Apple

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