Apple making ‘drastic cuts’ to Vision Pro headset goals due to production woes: report
Apple’s highly anticipated $3,500 “Vision Pro” mixed-reality headset is facing significant production challenges ahead of its planned launch in early 2024, according to a report released on Monday. Last week, Apple became the first company in history to achieve a $3 trillion market valuation. However, the tech giant has been forced to reduce its headset production targets due to difficulties faced by its manufacturing partners in dealing with the headset’s intricate design. The Financial Times reported that Apple plans to manufacture less than 400,000 Vision Pro units next year. Luxshare, a Chinese manufacturer, is said to be the sole company responsible for assembling the devices, with two other contracted Chinese firms supplying specific components. These firms revealed that they have only been asked to provide enough parts for the production of 130,000 to 150,000 Vision Pro units in the coming year.
As a result of these production challenges, Apple has also been compelled to delay the development of a cheaper version of the headset. This reduction in production targets signifies a significant departure from Apple’s initial internal sales expectations, which aimed for one million units to be sold in the first year after launch. The Vision Pro’s OLED displays have proven to be a major obstacle, with Apple expressing dissatisfaction with its suppliers’ ability to produce screens without defects. Apple has not yet responded to requests for comment on the report.
On Monday, Apple’s stock saw a decline of 0.8% in response to these production setbacks. The Vision Pro headset is a vital component of Apple’s long-term plans, described by CEO Tim Cook as a “spatial computer” that will redefine the company’s product lineup. It is considered to be Apple’s most significant launch in over a decade. Wedbush analyst Dan Ives predicted that approximately 150,000 units will be shipped in the first year after launch, with around one million units at lower price points in the second year. The Vision Pro headset carries a price tag of $3,500.
Despite its high-profile reveal, the Vision Pro received a lukewarm response at Apple’s Worldwide Developers Conference last month. Attendees audibly expressed disappointment when Apple executives announced the steep price and confirmed that the headset would not be available for purchase until early 2024. Critics have pointed out flaws such as the headset’s bulky design, the absence of a “killer app” at launch, and a limited battery life of only two hours. Moreover, it was noticed that Tim Cook, Apple’s CEO, did not wear the Vision Pro or showcase its capabilities during the June presentation. These production issues are impeding Apple’s ambitions for the headset.
Former Apple executive Tony Fadell, known as the “father of the iPod,” stated that his former employer had “jumped the shark” with the Vision Pro headset, primarily due to its high price. In contrast, Mark Zuckerberg, CEO of Meta, which is set to release a competing device called the Quest 3 later this fall, criticized Apple’s device for isolating users and hindering social interaction.
FAQs:
1. What is the release date for Apple’s Vision Pro mixed-reality headset?
Apple plans to launch the Vision Pro headset in early 2024.
2. How many units of the Vision Pro will Apple produce in 2024?
According to reports, Apple intends to manufacture less than 400,000 units of the Vision Pro headset in 2024.
3. What are the production challenges faced by Apple?
Apple is facing difficulties in production due to its manufacturing partners struggling with the intricate design of the Vision Pro headset, particularly regarding its OLED displays.
4. How does the production setback affect Apple’s sales expectations?
The production challenges have led to a reduction in Apple’s sales targets for the Vision Pro headset. Initially aiming to sell one million units in the first year after launch, the company’s new production targets indicate a significant departure from its earlier expectations.
5. What are some criticisms of the Vision Pro headset?
Critics have highlighted issues such as the headset’s high price, bulky design, lack of a standout feature at launch, and limited battery life of two hours.
6. How has the market reacted to Apple’s production setbacks?
Apple’s stock experienced a decline of 0.8% following the news of production challenges with the Vision Pro headset.
7. What is the significance of the Vision Pro headset for Apple?
The Vision Pro headset is seen as a key component of Apple’s long-term plans, with CEO Tim Cook describing it as a “spatial computer” that will redefine the company’s product lineup. It is considered Apple’s most significant launch in over a decade.
8. How does the Vision Pro compare to Meta’s Quest 3?
While Apple’s Vision Pro seeks to offer mixed reality experiences, Meta’s Quest 3 is seen as a competing device in the market. Mark Zuckerberg, CEO of Meta, has criticized Apple’s device for potentially isolating users and hindering social interaction.
Report: Apple Forced to Scale Back Vision Pro Headset Ambitions due to Production Difficulties
Apple’s highly anticipated “Vision Pro” mixed-reality headset is facing significant production challenges ahead of its scheduled launch next year, according to a report released on Monday. The tech giant, which recently became the first company in history to achieve a $3 trillion market valuation, has reportedly been forced to reduce its production targets due to difficulties faced by its manufacturing partners in dealing with the intricate design of the headset. Sources close to Apple and Chinese manufacturer Luxshare, the sole company responsible for assembling the devices, revealed that fewer than 400,000 Vision Pro units will be produced in 2024. Additionally, two other Chinese firms contracted to supply specific components for the headsets disclosed that Apple’s request for parts is only enough to produce 130,000 to 150,000 units in the coming year. As a result of the production challenges, Apple has been compelled to postpone the development of a cheaper version of the headset.
These projected cutbacks represent a significant deviation from Apple’s previous sales expectations, which aimed to sell one million units in the first year following the launch. The production of OLED displays for the Vision Pro has been described as a major obstacle, with Apple reportedly dissatisfied with the ability of its suppliers to deliver defect-free screens. Apple has not yet responded to requests for comment on the report.
The market responded to these challenges with a 0.8% decrease in Apple’s stock on Monday. The Vision Pro serves as a crucial component of Apple’s long-term strategy, with CEO Tim Cook referring to the device as a “spatial computer” that will redefine the company’s product lineup. The headset launch represents Apple’s most important release in over a decade. In a recent note to clients, Wedbush analyst Dan Ives predicted that Apple will ship approximately 150,000 units in the first year of release, with an estimated one million units at lower price points in the second year. The Vision Pro comes with a hefty price tag of $3,500.
Despite its high-profile unveiling, the Vision Pro received a lukewarm reception at Apple’s Worldwide Developers Conference last month. Attendees expressed audibly discontent when Apple executives revealed the steep price and confirmed that the headset would not be available for purchase until early 2024. Critics pointed out concerns regarding the headset’s bulky design, lack of a standout feature upon launch, and limited battery life of just two hours. Furthermore, observations were made that Tim Cook, Apple’s CEO, did not wear the Vision Pro or demonstrate its capabilities during the June presentation. These production issues are stalling Apple’s objectives for the headset.
Former Apple executive Tony Fadell, often referred to as the “father of the iPod” due to his role in its development, criticized Apple for the Vision Pro, stating that the company had “jumped the shark” with the device, particularly highlighting its high price. Meanwhile, Meta CEO Mark Zuckerberg, whose company is set to release a competing device called the Quest 3 later this fall, argued that Apple’s product would isolate users instead of fostering social activity.