Apple: Will production of the Vision Pro stop by the end of the year?

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Apple is reportedly reducing production of the Vision Pro, but that doesn’t mean the company is exiting the headset business.

On Monday, The Information reported that Apple had scaled back production of the $3,500 (€3,200) headset since the summer. The company could completely stop manufacturing the Vision Pro as we know it by the end of the year.

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Apple has not yet confirmed any changes to production. But employees at Luxshare, the Chinese manufacturer responsible for assembly, said they were producing about half as many units per day as they did during peak production, the report said. An Apple representative did not immediately respond to a request for comment from Business Insider (BI).

The move comes as no surprise

Analysts told BI that they wouldn’t be shocked if Apple scaled back production of the devices – but they also wouldn’t be worried about such a move. Jacob Bourne, a tech analyst at BI sister firm Emarketer, said it “makes sense for Apple to scale back Vision Pro production,” citing price and weak consumer appeal.

Apple CEO Tim Cook recently told the Wall Street Journal that the expensive device is intended for people who “want tomorrow’s technology today.” “At $3,500, it’s not a mass-market product,” Cook said. “At the moment it is an early adopter product.”

“Ultimately, we don’t see this as surprising given the many reports of weaker demand for the Vision Pro and Tim Cook’s recent comments that it is not a mass-market product,” said William Kerwin, an analyst at Morningstar.

Wedbush Securities tech analyst Dan Ives said reducing production was a “smart strategy.” Especially if the reports of Apple’s work are a cheaper version of the Vision Pro. “This is all moving toward a more affordable Vision Pro with more features that are scalable,” Ives said.

Vision Pro critics have criticized the headset for a lack of apps, but developers don’t seem convinced consumers will line up to pay prices of this magnitude. The Vision Pro launched in February and few, if any, apps have taken off.

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Will the Vision Pro be replaced by a cheaper alternative?

Ives and Kerwin think a smaller, cheaper headset from Apple could change that. “Bloomberg” has reported that the tech giant is working on such a headset. Additionally, supply chain analyst Ming-Chi Kuo recently said that he predicted Apple would release “a lower-priced version with downgraded specifications.”

Kerwin said Apple’s ultimate goal is likely “a form factor that’s closer to glasses.” Morningstar’s current rating for Apple is two stars. Bourne said a reduction would not mean Apple was ready to abandon mixed reality. He also said he expects smart glasses to challenge competitors like Meta and Snap.

Read the original article on Business Insider.