Apple Reduces Production Estimates for Vision Pro Augmented Reality Headset Due to Design Difficulties: Report

According to the Financial Times, individuals familiar with the matter have revealed that Apple has had to significantly reduce its production estimates for the Vision Pro augmented-reality headset. This is primarily due to the intricate design challenges associated with the product.

Launched last month and expected to be available early next year in the US, the Vision Pro has a starting price of $3,499, more than three times the cost of more expensive headsets in Meta’s line of mixed and virtual reality devices.

According to the report, Chinese contract manufacturer Luxshare, Apple’s sole assembler of the device, was preparing to produce fewer than 400,000 Vision Pros in 2024.

According to the FT, it is below Apple’s previous internal sales target of one million units in the first 12 months.

Apple and Luxshare did not respond to Reuters requests for comment.

“Apple’s Vision Pro headsets were already facing challenges due to their high price, and now it has faced another setback,” said Susannah Streeter, head of finance and markets at Hargreaves Lansdown.

However, Streeter added that Apple has run into post-launch issues before, but recovered “remarkably well” after users tested the products.

The FT said Apple has asked two Chinese suppliers for enough components for 130,000 to 150,000 units in the first year, adding that plans for a cheaper version of the device have been shelved.

The biggest difficulty in the production process is the manufacturing of the device’s micro-OLED screens, as Apple is dissatisfied with the yield of flawless micro-OLEDs, according to the report.

The cut in production forecasts also “stung” Luxshare, the FT reported, as it was due to increase capacity to be able to build nearly 18 million units annually in the coming years.

Apple shares fell 0.3 percent after becoming the first company to end a trading session above $3 trillion on Friday.