Apple has reportedly scaled back its shipment estimates for the Vision Pro headset due to a drop in demand. Analyst Ming-Chi Kuo suggests the tech giant has slashed orders even prior to the global launch, with revised sales projections of 400,000 to 450,000 units in 2024, a substantial reduction from earlier estimates of 700,000 to 800,000 units. The $3,500 Vision Pro has seen its demand fall below expectations, prompting Apple to reevaluate its shipment forecast.
Apple has reportedly reduced production of its Vision Pro virtual reality headsets from 800,000 to 400,000 due to lower-than-expected demand. Apple analyst Ming Chi Kuo states that the $3,500 headset’s demand has fallen, and Apple expects it to decline further next year. Consequently, the company is revising its headset product roadmap and may consider a lower-priced mixed reality headset. To boost demand, Apple plans to introduce the Vision Pro in new markets. Despite the production cut, Kuo emphasizes that Apple is not altering product specifications or user experience.
According to a survey by Ming-Chi Kuo at Medium, Apple’s anticipated shipments of its Vision Pro mixed reality headset are estimated to range between 400,000 to 450,000 units during the 2024-25 period. This projection is significantly lower than the market consensus, which forecasts shipments between 700,000 and 800,000 units. The survey attributes this downward revision to Apple’s ongoing review and adjustment of its head-mounted display product roadmap, potentially resulting in the absence of a new Vision Pro model in 2025. Furthermore, the survey highlights challenges faced by the mixed reality headset market, including a lack of compelling applications, high price point, and concerns over headset comfort. In contrast, the virtual reality (VR) market is characterized as a niche but established sector with proven applications and better trend visibility.
Apple has significantly reduced its projected shipments of Vision Pro units for 2024, citing weak demand in the United States. Analyst Ming-Chi Kuo predicts a drop from an initial target of 700-800k units to just 400-450k units, even before the headset’s launch in non-US markets. This decline suggests that Apple’s expectations for the device’s popularity have been greatly diminished.
Apple’s Vision Pro headset has seen declining sales and interest since its launch in February. This is due to a lack of compelling apps and a high price point. Apple is reportedly working on a more affordable model, but it may not be released until 2025 or 2026. Despite these challenges, Apple has a strong relationship with its developers and has been successful in turning around similar situations in the past. The upcoming WWDC 2024 will be crucial for the Vision Pro, as Apple will need to convince developers and consumers to invest in the platform.
