Apple Inc. is reportedly cutting back on production targets for its Vision Pro headset due to difficulties faced by manufacturers in dealing with the device's intricate design. According to the Financial Times, sources close to Apple and Luxshare Precision Industry Co., the initial assembler of the gadget, have revealed that the company is now planning to produce fewer than 400,000 units of the headset, which has a hefty price tag of $3,499, in 2024.
The report states that two component suppliers based in China have also indicated that Apple has reduced its requirements for parts, requesting enough for only 130,000 to 150,000 units in the first year. In addition, plans for a cheaper version of the headset have been delayed. Despite these developments, Apple's stock value remains steady, while shares of Luxshare have experienced a slight increase.
The Vision Pro, unveiled by Apple last month, represents the company's ongoing efforts to sustain its sales momentum and boost the mixed-reality industry, which has struggled to gain widespread acceptance. Resembling advanced ski goggles, the headset will feature its own operating system, known as visionOS, as well as a dedicated App Store. It is set to launch in the US early next year and will be rolled out to other regions subsequently.
However, the new production targets are significantly lower than Apple's initial internal sales goal of 1 million units within the first year of release, as reported by the Financial Times. One of the main obstacles standing in the way of meeting these targets is the development of high-resolution inward displays that can project the wearer's vision to the external world. Apple is also collaborating with Korean display manufacturers to create a more affordable version of the headset, according to sources familiar with the matter.
Apple has yet to provide an official comment on these reports, while Luxshare has not responded to requests for comment.