Apple Cuts Production of $3,500 VR Headset Due to Low Demand 

Apple Cuts Production of $3,500 VR Headset Due to Low Demand 

Apple cut shipments for its Vision Pro mixed reality (MR) headset for 2024 due to weaker-than-expected demand, according to Ming-Chi Kuo, an analyst at TF International Securities. 

Kuo, who has written widely about Vision Pro on Medium, says Apple cut orders for the much-hyped headset, which blends virtual and augmented reality, even before it launched in non-US markets.

Apple now expects to sell only around 400,000 to 450,000 units of the Vision Pro this year. That compares to a “market consensus” of between 700,000 to 800,000, Chi Kuo wrote, citing sources.

Also read: Apple’s Vision Pro Sold 180,000 Units in Pre-orders but Device is Still ‘Very Niche’

Continued Vision Pro decline

Apple officially launched its $3,500 Vision Pro on Feb. 2, with up to 180,000 units of the headset sold in pre-orders. However, demand for Apple’s so-called ‘spatial computer’ has slowed ever since.

Kuo said demand for Vision Pro in the U.S. market “has fallen sharply beyond expectations,” forcing “Apple take a conservative view of demand” in markets outside the United States.

With the continued decline in sales, Apple is now adjusting” its roadmap for head-mounted gear, possibly delaying the launch of a cheaper, entry-level mixed reality headset to beyond 2025, Kuo says.

The firm previously expected to release a new model of the Vision Pro during the second half of 2025. Kuo believes the weaker-than-expected demand for the Vision Pro will lead to a decline of other virtual and augmented reality-based components.

“Vision Pro is the most critical application of Micro OLED [display],” Kuo wrote. “With key applications not growing as expected, the timeframe of mass production and adoption of Micro OLEDs in other small-sized consumer electronics devices will be delayed.”

He added that the challenge for Vision Pro “is to address the lack of key applications, price, and headset comfort without sacrificing the see-through user experience.”

Apple Cuts Production of $3,500 VR Headset Due to Low Demand 
Apple Vision Pro headset

Headset makes people sick

The early excitement with the dream Vision Pro headset gave way to misery, as some people got sick after using the device, forcing them to return it to Apple for a refund. The firm allows dissatisfied customers to return goods within 14 days of purchase.

Users complained that the headsets were uncomfortable and gave them headaches and motion sickness each time they put them on. Others said Vision Pro caused them eye problems, including a “burst blood vessel,” and neck fatigue due to the weight.

People also said the hardware did not help improve productivity at work and felt they weren’t getting value for their money.

In January, Ming-Chi Kuo, the TF International Securities analyst, predicted that Vision Pro could struggle because of its price. The device is competing with headsets that offer similar advanced VR/MR capabilities, like Meta Quest 3, which costs $499.

At the time, Kuo said while Vision initially sold out after pre-orders opened on Jan. 17, order volumes remained unchanged two days later, indicating that “demand may quickly taper off after the core fans and heavy users place their orders.”

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