Apple has drastically reduced shipments of Vision Pro mixed reality (MR) headsets since mid-2024, possibly ceasing production by the end of the year due to declining demand, reports The information via Reuters, AppleInsiderAnd 9to5Mac.
According to HKETSome upstream suppliers have halted production of Vision Pro components as early as May 2024 following Apple’s revised sales forecasts, leaving thousands of parts undelivered to warehouses. Apple has also reportedly halted work on the next-generation Vision Pro, signaling a shift towards cost-effective models aimed at broader market appeal.
An internal source from Luxshare Precision revealed that Apple could end production of Vision Pro by November 2024. Daily production has already dropped from 2,000 units to less than 1,000, although production lines remain active for a quick resumption or to assemble a more affordable Vision Pro model. minimal reconfiguration.
Neither Apple nor Luxshare have commented on the recent reports yet.
After launching in February 2024, Vision Pro initially gained traction but saw sales drop sharply due to its $3,500 price point. Meta’s Quest 3, on the other hand, costs $500, while the Quest Pro is available for $1,000. Analysts expect Vision Pro sales to reach 370,000 units in the third quarter of 2024, with another 50,000 units expected by the end of the year. Alseng And QQ news.
Industry sources indicate that Apple is developing a more affordable Vision Pro model with fewer features and downgraded hardware, priced around $2,000. Expected to have lower resolution displays by the end of 2025, it will ditch the EyeSight feature to reduce production costs.
Chinese suppliers remain crucial despite production cuts
Luxshare has produced 500,000 to 600,000 units of the Vision Pro, but there are still 200,000 units in stock, enough to meet demand until new models arrive. This glut highlights the challenges of Apple’s high-end strategy, which requires rapid adjustments to keep pace with changing market trends.
Despite scaling back development of high-end products, Apple continues to see China as the key to future growth, Apple reports Xinhua. Major partners such as Luxshare, Lens Technology and Goertek remain an integral part of Apple’s supply chain and market expansion strategy.
Lens Technology is expanding its production lines to support the affordable Vision Pro and other devices, reinforcing the importance of Chinese suppliers in Apple’s market realignment strategy.
Since 2020, Apple’s top three suppliers have had mixed performances. While Lens Technology and Goertek experienced slowing or declining earnings growth, Luxshare maintained steady growth.
Tim Cook has often emphasized the importance of the Chinese supply chain to Apple’s success. During a March 2024 session with key suppliers, he praised China’s stability and efficiency as unparalleled advantages, reports East money.
On October 23, 2024, Apple COO Jeff Williams visited Lens Technology’s Changsha factory together with Chairman Qunfei Zhou to inspect iPhone production. The day before, he toured Luxshare’s facilities in Kunshan and Suzhou together with Chairman Laichun Wang.
During his visits, Williams emphasized the critical role of supplier partnerships, noting that Apple’s product success depends on these collaborations. These visits underscore Apple’s commitment to maintaining strong ties with its Chinese supply chain partners, ensuring smooth operations and continued manufacturing excellence.
Apple and Luxshare are expanding production to Southeast Asia, especially Thailand, to reduce geopolitical risks and increase flexibility. This strategy reflects Apple’s efforts to diversify its supply chain for greater resilience and competitiveness, as reported by KrASIA And Nikkei Asia.
The company’s rapid change in strategy underlines its market flexibility. Through the development of an affordable Vision Pro and extensive supply chain efforts in China and Southeast Asia, Apple is trying to regain market share and fend off competition from rivals like Meta.
