Report: Vision Pro Headset's Complex Design Forcing Apple to Make 'Drastic' Production Cuts

MacRumors

MacRumors

macrumors bot


Apple has been forced to make "drastic cuts" to production forecasts for its Vision Pro mixed reality headset due to the complexity of its design and difficulties in production, reported the Financial Times on Monday.

apple-vision-pro-eye-tracking.jpg

Apple's $3,500 headset is set to go on sale early next year, but analysts have suggested the lengthy gap between its unveiling at WWDC in June and official launch could be more to do with supply chain problems than a way to give developers time to create apps for the device.

According to the paywalled report, Apple is said to have been unhappy with the productivity of manufacturing partners tasked with supplying the two micro-OLED displays for the wearer's eyes and the outward-facing curved lenticular lens. The micro-OLED displays were reportedly supplied by Sony and TSMC for the prototypes, but it is not known who is supplying them at scale.

As a result of production challenges, Apple is preparing to make fewer than 400,000 units in 2024, according to the report, citing sources close to Apple and Luxshare, the Chinese contract manufacturer that will initially assemble the device. Meanwhile, two China-based sole suppliers of certain components for the Vision Pro reportedly said Apple was only asking them for enough for 130,000 to 150,000 units in the first year.

"Both projections imply a significant cut to production from an earlier, internal sales target of 1mn units in the first 12 months," wrote the FT. "The forecasts for low volumes reflect Apple's lack of confidence in being able to scale production, according to analysts and industry experts, following years of missed deadlines in launching the device," the report added.

Meanwhile, Apple is said to have pushed back plans to launch a more affordable version of the headset that it hopes will appeal to the mass market. Apple is reportedly working with Korean display makers Samsung and LG on the second-generation headset, and has explored using mini-LED for the displays to drive the price lower. However, FT's sources claimed Apple was insisting on using micro-OLED even for the non-Pro headset, despite suppliers failing to match expectations.

Bloomberg's Mark Gurman previously reported that Apple plans to launch a more affordable version of its Vision Pro headset by the end of 2025, likely to be called "Apple Vision One," or more simply, "Apple Vision."

Article Link: Report: Vision Pro Headset's Complex Design Forcing Apple to Make 'Drastic' Production Cuts
 
Article Link
https://www.macrumors.com/2023/07/03/apple-vision-pro-drastic-production-cuts/
Last edited:
I'm not sure if a 3500+ USD device with (often) personalised prescription lens inserts will work for in-store pickup. Most of the buyers will be businesses and wealthy people with more money than free time, none of which are silly enough to go to an Apple store for pick-up.

I would love to see demo units there though, I'm okay with booking an appointment and getting a few minutes with the device on my head to see if I like it.

This thing will be sold-out right away though, no matter the production numbers.
 
Basic75 said:
Why do you think there will be high demand?
Click to expand...
For starters, less than 200,000 units in the first year will ship. I guarantee there are more than 200,000 people waiting with money in hand to buy this. Secondly, it's revolutionary. The hand gesture control and eyesight control technologies spark excitement. All the WWDC attendees who reported back all said it was amazing. Many of these reviewers are extremely well respected and their followers will buy the device. Finally, it's Apple. There is no other company known for having long lines for a new high-priced device.
 
To put that into perspective, 400,000 units is less than the average number of iPhones that Apple sells each day. If suppliers are expecting enough parts to make only 130k to 150k headsets in 2024, that’s minuscule.

Those micro OLED panels are super expensive, maybe even more so than Apple imagined. The mainstream version of this headset will go with less expensive panels for sure.
 
Get the Pro when it's released because from the rumblings coming out of Apple about the headset looks like the mass produced version is going to be a low spec'd version which might upset a lot of people because of all the excuses we keep hearing from Apple about how difficult the headset is to make, which when put into the real world means reduction in spec to ease on production costs and parts.
 
Important to remember there's an inherent delay in this kind of information reaching people like us (rumour fans). And the information is almost certainly mutating along the way (or manipulated for various reasons, such as leak-control or for the benefit of various players).

Before Apple introduce something with this much riding on it, and provide the level of detail given at WWDC, I'm sure it has to have passed through a process of waypoint checks that make the kind of challenges reported here unlikely to still be issues*.

*Yes, I know – AirPower – but that was on a totally different scale, and outside of us lot of 'minutiae aficionados', hardly causes any serious ructions when quietly cancelled.
 
It makes me think that the next versions of Vision Pro won't be as premium, since it's a way too complex device. Apple is probably going to cut on features or high standards materials to cut costs. Everyone being able to get one of these will sure be buying a unique product. I wish I was one of them.
 
I hope it's not another "Newton" device, where the vision (no pun intended) was far ahead of what the available technology could provide at the time.

It has to be said: a lot of people who went into the demo believing it was just a hyped-up nothingburger came out impressed - sometimes actually moved. So, I'd say they could sell quite a few of them.

I don't see people lining up around the block for it to buy it - but I could see people lining up to try it.
 
This is Tim Cook’s legacy, Apple won’t let it bomb. Apple will make mixed reality mainstream through sheer will and market dominance. Plus mixed reality is obviously the future, Apple will need to enter the market sooner or later. iPhone with the smartphone market proved entering sooner can pay off bigtime.
 
In recent years the launch of nearly every new Apple device is followed within a month or two by a news item saying Apple are having to scale-back expected production for one reason or another. I'm at least 50% sure by now that this is just a marketing-ploy to encourage panic-ordering from the type of people who went on toilet-roll buying-sprees at the start of the pandemic.
 
Last edited:
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Back
Top