Apple‘s recently launched augmented-reality headset, Vision Pro, is facing major production forecast cuts, according to a report by the Financial Times. Multiple sources familiar with the manufacturing process revealed that Apple has been forced to reduce its production targets for the device.
Luxshare, the Chinese contract manufacturer responsible for assembling the Vision Pro headset, is reportedly preparing to produce fewer than 400,000 units in 2024. This information comes from two individuals close to Apple and Luxshare, as cited by the Financial Times. Apple and Luxshare have not responded to requests for comment on the matter.
According to the report, Apple has approached two China-based suppliers to request components for only 130,000 to 150,000 units of the Vision Pro headset in its first year. This is significantly lower than the earlier internal sales target of 1 million units for the first 12 months.
The complexity of the headset design and production challenges have been cited as reasons for the scaling back of production targets. As a result, plans for a more affordable version of the device have been delayed, as mentioned in the Financial Times report.
The Vision Pro headset carries a starting price of $3,499, which is more than three times the cost of Meta’s most expensive headset in its line of mixed and virtual reality devices.
Despite the production setbacks for the Vision Pro, Apple’s market capitalization recently exceeded $3 trillion for the first time since January of last year. Investors continue to show confidence in Apple’s ability to generate revenue, especially as the company explores new markets such as virtual reality.
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