Apple Forced to Make Huge Cuts to Vision Pro Headset Production Plans

Published on July 4, 2023

It seems like Apple’s facing some production difficulties with their fancy $3,499 Vision Pro mixed reality headset. Word has it that these snags in production have made Apple rethink its sales target of selling 1 million units in 2024. They’re worried they won’t be able to keep up with the demand for their swanky new device.

Apple Vision Pro. Credit: Apple

According to the folks at FT, these production issues have also put a damper on the plans for a cheaper version of the Apple Vision Pro. And let’s be real, a lower-priced option would’ve been a sweet relief for many, considering that jaw-dropping $3,499 price tag.

Now, here’s the scoop from insiders at Apple and Luxshare, the Chinese contract manufacturer set to assemble the Apple Vision Pro. They’re saying that they expect to churn out less than 400,000 units in 2024. Oh, and by the way, Luxshare seems to be the only company initially getting their hands dirty assembling these headsets.

To add more fuel to the fire, sources from Chinese suppliers who provide specific components for the Apple Vision Pro spilled the beans that Apple only requested enough parts to make somewhere between 130,000 to 150,000 units in 2024. Quite a drop from that initial 1 million target, right?

The real headache for Apple seems to lie in manufacturing those two micro-OLED displays for each eye and the outward-facing lens. According to FT, this is the major challenge for the tech giant because these displays offer a resolution that blows anything else currently on the market out of the water. And let’s not forget that the outward lens lets you peep at the world outside while wearing the headset. Fancy stuff!

Apparently, Sony and chipmaker TSMC were the ones who provided the displays for the Apple Vision Pro prototypes. But, surprise, surprise, Apple hasn’t been too thrilled with their productivity and the less-than-impressive number of defect-free displays they’ve been able to whip up.

One tech guru named Jay Goldberg, founder of D/D Advisors, had some wise words to share. He said that the Apple Vision Pro is the most complex consumer device anyone has ever made. And let’s not forget about that hefty $3,499 price tag, with the displays being the costliest part. Apple knew what they were getting into, accounting for production inefficiencies and low manufacturing yields. They weren’t expecting to make a killing in profits during the first year.

Now, assuming they can overcome these hurdles, analysts at Canalys are predicting a user base of over 20 million for the Apple Vision Pro within five years of its launch. Well, only time will tell if they hit the bullseye with that one.

So, there you have it, the inside scoop on Apple’s bumpy ride with the Vision Pro. Will they conquer these obstacles and win the hearts of millions? We’ll just have to wait and see.

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