Apple has had to reduce its production forecasts for the Vision Pro augmented-reality headset due to design complexities. Sources with knowledge of the matter revealed that Chinese contract manufacturer Luxshare, Apple’s exclusive assembler for the device, is expected to produce fewer than 400,000 units of the Vision Pro in 2024. This figure falls short of Apple’s initial internal sales target of 1 million units within the first year of release.
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The Vision Pro, which was launched last month and is slated to be available in the U.S. early next year, comes with a starting price of $3,499, making it more than three times the cost of Meta’s most expensive mixed and virtual reality headset. Apple and Luxshare did not respond to requests for comment from Reuters.
Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, acknowledged that Apple’s Vision Pro headset was already facing challenges due to its high price point and now faces a potential setback. However, Streeter also pointed out that Apple has previously encountered post-launch issues that have been resolved successfully once products have undergone testing by users.
The production hurdles primarily revolve around manufacturing micro-OLED displays for the device. Apple is reportedly dissatisfied with the yield of defect-free micro-OLEDs, leading to complications in the production process. The Financial Times also reported that Apple has requested components for 130,000 to 150,000 units from two Chinese suppliers for the first year, while plans for a more affordable version of the device have been delayed.
Luxshare is said to be disappointed by the production forecast reduction since it had plans to expand its capacity to manufacture nearly 18 million units annually in the coming years. Following the news, Apple’s shares saw a slight decline of 0.3%, despite the company becoming the first to reach a market value of over $3 trillion at the end of the previous trading session.
