Apple Vision Pro production cut amid slow demand, high inventory

Apple has asked its supply chain to scale down production of its Vision Pro mixed reality heset, according to a new report. move follows Apple’s decision to introduce a cheaper variant that could appeal to masses since $3,500 price tag of existing model seems failing to entice customers. slow demand has led to an inventory level that could suffice not just present but future demand for Apple Vision Pro.

Information has reported, citing sources privy to Apple ’s supply chain, that existing inventory includes components enough to assemble between 500,000 and 600,000 Vision Pro hesets. However, high price and lack of compatible apps are among reasons why Vision Pro, despite being Apple’s futuristic and highly vanced product in years, could not sell as anticipated.

According to an employee from a supply chain, factory stopped production of Vision Pro components back in May due to “weak forecasts,” as warehouse gared a stockpile of “tens of thousands” of unused and undelivered parts. Apple told Luxshare, its prominent supplier responsible for Vision Pro’s final assembly, to scale back manufacturing of Vision Pro in November, report said, citing an employee who confirmed that his company was producing around 1,000 Vision Pro hesets a day compared to 2,000 units earlier.

Luxshare h assembled “a total of between 500,000 and 600,000 hesets” since it began production last year, but Vision Pro started selling in February in US only. Despite stockpile, Apple is not dismantling production lines as it hopes Vision Pro sales might pick up.

On or hand, Apple is anticipating a higher sell-through volume for cheaper Vision Pro model, expected to arrive sometime next year. Internally codenamed N109, more affordable heset may allow Apple to make inros in heset market way Meta has through Quest hesets.

Mark Zuckerberg-led company sold roughly 6 million Quest 2 and 3 million Quest 3 hesets in first three quarters after ir public releases. While Apple has not shared count of Vision Pro units it has sold so far, report has pointed out company h asked at least one supplier to produce components for 8 million units over its lifespan before launch. For cheaper Vision Pro model, Apple is reportedly dialing down its expectations to 4 million units, components for which have been placed with same supplier.

report also ded that Apple has halted work on Vision Pro’s successor, or Vision Pro 2, for at least a year.