Apple has cut production of the Vision Pro headset and will cease manufacturing the present model by the end of 2024. Still, it might resume in 2025.
Could this be a manifestation of the struggles the tech giant is experiencing in generating demand for this wearable?
Sliding Demand and Production Declines
The Information reported that the sources directly involved in the production of Vision Pro parts said that Apple began curbing output early in the summer. The cut means that the firm is now well-stocked with enough inventory to meet demand over the next year.
Weak sales of Vision Pro are blamed on two main issues: weak content as well as a high price tag.
That is reportedly only 500,000 to 600,000 units of the component output for Vision Pro. In response to Apple's weak sales prospects, several factories stopped producing Vision Pro parts even as early as May.
Hundreds of thousands of undelivered parts are now bursting in warehouses, which signifies a huge mismatch between what was produced and what is needed in the market.
Apple Needs to Slow Down in Production
In this scenario, the Chinese assembler of Vision Pro, Luxshare, has already been told by Apple that it may need to taper off by November. Luxshare is currently assembling around 1,000 units per day while its peak capacity production rate still stands at around 2,000 units per day.
To make it worse, Apple has not actually ruled out resuming production in case sales go up since the production lines are not scheduled for disassembly anytime soon.
Shift to More Cost-Effective Headsets
Due to the failures of the Vision Pro, Apple has reportedly shelved the mass production of its next generation, at least until the coming year. Instead, the firm is now concentrating on manufacturing a budget headset, MacRumors uncovered.
Suppliers have been briefed to gear up for the manufacture of four million units of the budget product. That's significantly less than what the company had expected for its Vision Pro, implying that it projects even more anemic sales for the next model.
Although the follow-up Vision Pro model remains on ice for now, there are signs that an evolutionary update to the present one would come from Apple. The upgrade would be seemingly minor - possibly with a chip refresh - to help Apple tap into what is already in its pipeline of components.
Scaling Down Apple Vision Pro's Production
Apple has scaled down its production significantly, and the whole focus seems to have shifted towards releasing a cost-effective version. The new direction of a lower-cost model combined with its eventual reduced production truly hampers the potential of the Vision Pro. It will all depend on how Apple recalibrates the content and user experience to convince consumers to splurge on the headset and its subsequent versions in the tech-savvy future.
First of all, it was a boon for Vision Pro that marked the 'break of dawn in the produce world'. Still, as things stand now it might be an unwinding turn of the journey when Apple re-evaluates its approach to the tough tech market.
The next few months would unveil whether the Vision Pro would regain the momentum of its previous support or it would just be another example of a high-tech product that failed to hit the chords of the consumers.
