Apple Cuts Vision Pro Headset Production Amid Manufacturing Problems

According to the Financial Times, Apple’s plans for the highly anticipated Vision Pro headset have been hindered by manufacturing issues, forcing the company to make significant cuts to its production forecasts.

Apple vision pro side

The headset, which was unveiled last month after seven years of development, was expected to be Apple’s most significant product launch since the iPhone.

According to sources familiar with the manufacturing process, the complexity of the headset design and difficulties in production have led to the scaling back of production targets.

Additionally, plans for a more affordable version of the device have been delayed. Apple has already announced that the “spatial computing” headset, priced at $3,500, will not be available for sale until early next year.

Insiders close to Apple and Luxshare, the Chinese contract manufacturer responsible for assembling the device, revealed that the company is preparing to produce fewer than 400,000 units in 2024.

Furthermore, two suppliers of specific components for the Vision Pro stated that Apple has requested enough supplies for only 130,000 to 150,000 units in the first year. These figures represent a significant reduction from the initial internal sales target of 1 million units within the first 12 months.

VisionOS walkthrough

Wedbush estimated that Apple would ship around 150,000 units in the first year, while Morgan Stanley predicted around 850,000 units, and Goldman Sachs believed shipments could reach as high as 5 million by 2024.

One of the major challenges faced by Apple is the manufacturing of the sleek screens for the device. During the June demonstration, the micro-OLED displays for the prototypes were supplied by Sony and chipmaker TSMC

Apple is now collaborating with Korean display makers Samsung and LG on the second-generation headset.

While the company has explored using other display technologies, such as mini-LED, to reduce costs, Apple is insisting on using micro-OLED even for the non-Pro version.

The cut in production forecasts for 2024 has disappointed Luxshare, which had been gearing up its capacity to manufacture nearly 18 million units annually.

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