Apple’s Mixed Reality Dreams Hit Reality Check: Vision Pro Production Reportedly Ending
In a surprising turn of events, Apple appears to be pulling back on its ambitious mixed reality venture, with reports indicating the tech giant may halt production of its Vision Pro headset by the end of 2024. This development raises questions about the future of virtual and augmented reality in home entertainment.
According to multiple sources directly involved in component manufacturing, Apple began scaling back Vision Pro production in early summer 2024. The company has reportedly built enough units—between 500,000 and 600,000 headsets—to meet current market demand through next year.
The apparent production slowdown points to several key challenges:
- High Price Point: At $3,499, the Vision Pro’s steep cost has limited its appeal to mainstream consumers.
- Limited Content: Despite promising a 100-foot virtual cinema experience, the device lacks sufficient entertainment options.
- Weak Sales: Some factories stopped making components as early as May 2024 due to disappointing sales forecasts.
Luxshare, the Chinese company assembling the Vision Pro, has received notice that production might need to wind down by November. Their daily output has already dropped to 1,000 units—half of what they produced at peak capacity.
Perhaps most telling is Apple’s shift in strategy. The company has reportedly:
- We have suspended work on the second-generation Vision Pro for at least a year.
- I changed my focus to concentrate on creating a headset that is more affordable.
- We have significantly adjusted our expectations, planning to produce only 4 million units of the cheaper model, which is half of the original Vision Pro production target.
While Apple hasn’t completely abandoned the Vision Pro concept, their immediate plans appear more modest. Sources suggest we might see a minor update with limited design changes and a possible chip upgrade—likely an effort to use up excess components in the supply chain.
This situation raises broader questions about the future of VR and AR in home entertainment. Despite the Vision Pro’s impressive technical specifications, including advanced Micro-OLED displays and spatial audio capabilities, the market response suggests consumers aren’t ready to embrace headset-based entertainment at premium prices.
The timing of this news is particularly interesting, as Apple just released “Submerged,” its first scripted content specifically for the Vision Pro. While the content has received positive reviews, industry observers note this might be too little, too late to change the device’s market trajectory.
Looking ahead, the mixed reality landscape appears to be shifting. Companies like Meta are focusing their VR/AR efforts more on gaming and productivity rather than home cinema experiences.
This trend suggests that immersive home entertainment might need more time—or a different approach—to find its footing in the consumer market, especially given Apple’s apparent retreat from the high-end segment.
For now, warehouses filled with unused Vision Pro components stand as a reminder that even the most innovative technology needs the right mix of pricing, content, and market timing to succeed.
The tech industry closely observes Apple’s regrouping and reconsideration of its mixed reality strategy to glean lessons from this ambitious yet challenging venture.