After a fanfare debut, Apple’s highly anticipated Vision Pro mixed reality headset seems to be experiencing some turbulence. It could well be part of the commercial failures of the American giant.
According to a new investor report from influential analyst Ming-Chi Kuo, the tech giant has significantly reduced its near-term delivery forecast for Vision Pro due to a drop in demand. Kuo says Apple has reduced its 2024 Vision Pro sales forecast to just 400,000 to 450,000 units. This represents almost half of the previous estimate of “market consensus” of 700,000 to 800,000 headsets that Kuo said investors were planning for this year alone.
These lowered objectives come even beforeApple hasn’t even launched the $3,499 Vision Pro outside the US yet. According to Kuo’s supply chain sources, falling domestic demand has led Apple to ” reduce orders…meaning demand in the US market fell far beyond expectations “.
The Vision Pro could be a dismal failure for Apple
The announcement of this decline in production could spell the end of Apple’s first major foray into space computing hardware. Despite rave reviews of the Vision Pro’s technical prowess, It seems the device’s exorbitant price tag and lack of compelling use cases dampened general public enthusiasm from the start.
Early adopters, eager to be at the forefront of technology, largely fueled early sales at launch. But Apple today seems concerned about maintaining momentum, and Kuo believes the company could even delay or reconsider plans for a less expensive tracking headset after 2025.
News of the Vision Pro’s apparent commercial difficulties could also have broader ramifications for the entire AR/VR component ecosystem. Analyst Kuo specifically mentions potential impacts for specialized components such as microOLED displays. In the absence of sustained demand from Apple and other major brands, major vendors may prioritize other markets and other technologies over AR/VR.
Reports of production cuts and lackluster sales therefore raise legitimate questions about the revolutionary nature of Apple’s first foray into the mixed reality sector. It remains to be seen whether or not the headset will find its audience outside of the United States. As a reminder, we know that the Vision Pro should be launched this summer in France.