Apple’s newest hardware product in several years – the Apple Vision Pro, launched in February 2024 – seems to have not gained any favour among consumers, resulting in a halt of production for the $3499 mixed reality headset. The Cupertino-headquartered company has halted production of its first-generation Vision Pro device due to a significant decrease in demand, according to a report by MacRumors, a website that tracks Apple-related developments.
There are two main reasons speculated for the weak demand. First, the Vision Pro’s high price, set at approximately $3,499, makes it unaffordable for most. Second, the device suffers from an insufficient content ecosystem, as there is a lack of a robust library of applications, games, and experiences specifically optimized for such mixed-reality headsets. However, the slower demand may not surprise the company, as Apple CEO Tim Cook had described the device as an ‘early-adopter product.’ With the release, Apple targeted users genuinely interested in cutting-edge technology, rather than trying to reach the wider market.
Apple’s decision to stop production wasn’t made overnight. Reports indicate that production had been gradually scaled down since early summer, with Luxshare (a Chinese company that serves as the Vision Pro’s assembler) assembling only 1,000 units daily by October, a clear 50% decrease from peak output. In November, Apple reportedly directed Luxshare to stop production completely.
This halt in production comes at a time when Apple is reportedly working to integrate Apple Intelligence – its comprehensive suite of AI-powered features – into the Vision Pro mixed-reality (MR) headset. But now, the company seems to want to bet on a cheaper version of the device.
Earlier, Bloomberg’s Mark Gurman revealed that the company had chosen to delay development of the next-generation Vision Pro to focus on creating a budget-friendly alternative. Expected to launch by late 2025, the device will reportedly cost around $1,500, targeting a broader consumer base. This move is expected to help Apple compete with other options available in the market like Meta’s Quest and Microsoft’s HoloLens.
The race toward this new technology is becoming more interesting, as some estimates project the mixed-reality headset market – valued at $2.89 billion in 2022 – to grow to $50 billion by 2032. Meanwhile, Apple’s total revenue in 2024 was $391 billion, marking a small decrease compared to the record $394.33 billion in 2023. The iPhone maker posted a net income of $93.74 billion in 2024, which was lower than the record-high earnings of the previous year.
