Report: Vision Pro Headset's Complex Design Forcing Apple to Make 'Drastic' Production Cuts

Apple has been forced to make "drastic cuts" to production forecasts for its Vision Pro mixed reality headset due to the complexity of its design and difficulties in production, reported the Financial Times on Monday.

apple vision pro eye tracking
Apple's $3,500 headset is set to go on sale early next year, but analysts have suggested the lengthy gap between its unveiling at WWDC in June and official launch could be more to do with supply chain problems than a way to give developers time to create apps for the device.

According to the paywalled report, Apple is said to have been unhappy with the productivity of manufacturing partners tasked with supplying the two micro-OLED displays for the wearer's eyes and the outward-facing curved lenticular lens. The micro-OLED displays were reportedly supplied by Sony and TSMC for the prototypes, but it is not known who is supplying them at scale.

As a result of production challenges, Apple is preparing to make fewer than 400,000 units in 2024, according to the report, citing sources close to Apple and Luxshare, the Chinese contract manufacturer that will initially assemble the device. Meanwhile, two China-based sole suppliers of certain components for the Vision Pro reportedly said Apple was only asking them for enough for 130,000 to 150,000 units in the first year.

"Both projections imply a significant cut to production from an earlier, internal sales target of 1mn units in the first 12 months," wrote the FT. "The forecasts for low volumes reflect Apple's lack of confidence in being able to scale production, according to analysts and industry experts, following years of missed deadlines in launching the device," the report added.

Meanwhile, Apple is said to have pushed back plans to launch a more affordable version of the headset that it hopes will appeal to the mass market. Apple is reportedly working with Korean display makers Samsung and LG on the second-generation headset, and has explored using mini-LED for the displays to drive the price lower. However, FT's sources claimed Apple was insisting on using micro-OLED even for the non-Pro headset, despite suppliers failing to match expectations.

Bloomberg's Mark Gurman previously reported that Apple plans to launch a more affordable version of its Vision Pro headset by the end of 2025, likely to be called "Apple Vision One," or more simply, "Apple Vision."

Related Roundup: Apple Vision Pro
Buyer's Guide: Vision Pro (Buy Now)
Related Forum: Apple Vision Pro

Top Rated Comments

King_Kimbo Avatar
9 months ago
I’m going to buy 2 and keep one boxed for 20 years.
Score: 50 Votes (Like | Disagree)
coolbreeze2 Avatar
9 months ago

Why do you think there will be high demand?
For starters, less than 200,000 units in the first year will ship. I guarantee there are more than 200,000 people waiting with money in hand to buy this. Secondly, it's revolutionary. The hand gesture control and eyesight control technologies spark excitement. All the WWDC attendees who reported back all said it was amazing. Many of these reviewers are extremely well respected and their followers will buy the device. Finally, it's Apple. There is no other company known for having long lines for a new high-priced device.
Score: 36 Votes (Like | Disagree)
diddl14 Avatar
9 months ago
Probably only to be sold in the stores. Back to the good old days!



Attachment Image
Score: 29 Votes (Like | Disagree)
Darren.h Avatar
9 months ago
This is gonna bomb worse than the 2023 Mac Pro M2 Ultra.
Score: 24 Votes (Like | Disagree)
Basic75 Avatar
9 months ago

So when it ships, how will Apple handle the situation of supply not meeting demand?
Why do you think there will be high demand?
Score: 24 Votes (Like | Disagree)
Harvey Zoltan Avatar
9 months ago
Pretty sure this was going to be sold out with weeks/months waiting time to get one even with the original production numbers.
Score: 15 Votes (Like | Disagree)

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