Apple Vision Pro production halted amid weak demand: Report

By November, Apple reportedly instructed Luxshare to wind down production altogether [File]
| Photo Credit: REUTERS

Apple’s first-generation Vision Pro headset has reportedly ceased production, according to MacRumors.

The device, which debuted earlier in 2024 as Apple’s most ambitious mixed-reality venture, has faced production cuts and dwindling demand, leading to speculation that its manufacturing has ended.

Reports obtained by MacRumors indicate that Apple began scaling back production in early summer, with its assembler Luxshare producing only 1,000 units daily by October, a 50% reduction from peak production levels.

By November, Apple reportedly instructed Luxshare to wind down production altogether. The company is believed to have accumulated enough inventory, estimated between 500,000 to 600,000 units to meet the expected demand through 2025. Reports obtained by MacRumors suggest warehouses are stocked with tens of thousands of undelivered components, reflecting a strategic move by Apple to halt further manufacturing while avoiding surplus.

The Vision Pro has struggled to gain traction due to its steep $3,499 price tag and limited content ecosystem. Described by Apple CEO Tim Cook as an “early-adopter product,” the device was aimed at tech enthusiasts rather than the broader market.

However, even within this niche, demand has been tepid, prompting Apple to reevaluate its strategy for the mixed-reality space. In light of the Vision Pro’s challenges, Apple is reportedly shifting focus to developing a more affordable mixed-reality headset.

Suppliers have been asked to prepare for the production of up to four million units of this lower-cost device throughout its lifecycle; half the original Vision Pro’s target.

Development on the second-generation Vision Pro has reportedly been paused for at least a year. However, according to MacRumors, there are indications that Apple could release an incremental update to the first-generation model with limited design changes, including an upgraded M5 chip and enhanced intelligence features.

A potential launch for this updated device can take place between late 2025 and early 2026, per the outlet.