Targets For Vision Pro Headsets Are Being Scaled Back By Apple

Apple Inc. is reportedly revising down its production targets for the Vision Pro headset due to challenges faced by manufacturers in dealing with its intricate design. According to sources familiar with the matter, the tech giant is projected to manufacture fewer than 400,000 units next year, significantly below its initial internal goal of selling 1 million units in the first year. Luxshare, the Chinese electronic components manufacturer responsible for assembling the device, is currently the sole company involved in the production process.

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Apple and Luxshare declined to comment on the report when contacted by the Financial Times, while MarketWatch has also sought responses from both companies. Additionally, two Chinese suppliers responsible for manufacturing specific components for the headset have reportedly been requested to produce only 130,000 to 150,000 units in the first year.

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Manufacturing challenges have primarily centered around the micro-OLED (Organic Light Emitting Diode) displays, which are the most expensive part of the headset. Apple has expressed dissatisfaction with the number of defect-free displays produced thus far. Sony and chip maker TSCM are said to have supplied the displays for Apple's June demonstration, but both companies refrained from commenting on the report.

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The report further stated that Apple is facing difficulties in developing a more affordable version of the $3,500 headset and is collaborating with Samsung and LG for the second-generation model. Canalys analyst Jason Low noted that any scarcity of Vision Pro headsets is likely to generate significant demand from Apple enthusiasts and affluent users.

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Apple's shares have experienced a 49% increase so far in 2023. Recently, the tech giant achieved a market valuation above $3 trillion, marking the first time it closed a trading session above this milestone.

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