Apple has been forced to significantly lower its production forecast for the Vision Pro, a mixed reality headset.
Apple is preparing to produce fewer than 400,000 Vision Pro units in 2024, sources said, after the company hoped to ship 1 million units by the time it launches in 2024. Design complexity and production difficulties were the reason for the lowered target, and plans for a cheaper version had to be delayed, according to multiple people with direct knowledge of the device's manufacturing process.
After seven years of development, the Vision Pro was released last month in what has been hailed as the most important product launch since the iPhone. Apple has said the $3,500 headset won't be available until early next year, a long way from its June 5 launch date.
Analysts believe this has more to do with supply chain issues than giving developers time to create apps for the Vision Pro.
"The Vision Pro is a complex device with a lot of moving parts," said Isaiah Research analyst Eddie Han. "It's likely that Apple is having trouble securing the necessary components and that's causing production delays."
Han and other industry insiders believe that the low production expectations reflect Apple's lack of confidence in large-scale production.
"Apple has never made a product like the Vision Pro before," said Han. "It's a new category and there's a lot of risk involved. Apple is probably being cautious and not wanting to overcommit to production."
The Vision Pro is a major gamble for Apple. The company is betting that the market for mixed reality headsets is large enough to support a high-priced device. However, there are few other major players in the market and it's unclear how consumers will respond to the Vision Pro.
Apple's decision to lower its production forecast is a sign that the company is not taking the Vision Pro lightly. The company is clearly aware of the risks involved and is taking a cautious approach. Only time will tell if Apple's gamble pays off.
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