Apple Vision Pro production cut amid slow demand, high inventory

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

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

According to an employee from a supply chain, the factory stopped the production of Vision Pro components back in May due to “weak forecasts,” as the warehouse gathered 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 the manufacturing of Vision Pro in November, the report said, citing an employee who confirmed that his company was producing around 1,000 Vision Pro headsets a day compared to 2,000 units earlier.

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

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

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

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