Sign up to receive free updates from Apple Inc
We will send you a daily email digest, called myFT Daily Digest, summarizing the latest news about Apple Inc every morning.
Apple Inc is facing significant challenges in producing its highly anticipated mixed-reality Vision Pro headset. The complexity of the design and manufacturing difficulties have led to production forecasts being drastically scaled back. Additionally, plans for a more affordable version of the device have been delayed. These setbacks follow years of missed deadlines in the development of the headset, which was unveiled last month after seven years in development and touted as Apple’s most important product launch since the iPhone.
Analysts believe that the delay in the release of the $3,500 spatial computing headset is primarily due to supply chain issues rather than a need for additional time for app development. According to sources close to Apple and contract manufacturer Luxshare, fewer than 400,000 units of the device will be assembled in 2024. This represents a significant reduction from the initial internal sales target of 1 million units in the first year. Furthermore, Apple is currently relying solely on Luxshare for assembly, and suppliers of certain components have reported lower demand than expected.
One of the main challenges in manufacturing the Vision Pro headset is the production of its sleek screens. These screens consist of two micro-OLED displays, one per eye, and a curved “lenticular” lens. The inward displays offer superior resolution compared to existing products on the market, while the outward lens allows users to see their surroundings. Suppliers have struggled to meet Apple’s quality standards for the micro-OLED displays, making them the most expensive component of the device.
Despite these difficulties, industry experts remain optimistic about the potential success of the Vision Pro. Analysts predict that the headset will amass a user base of 20 million within five years of its launch, even with the initial production limitations. Apple is already working on future iterations of the headset, including a more affordable version targeted at mass-market consumers.
“A lot of this is normal growing pains,” said Jay Goldberg, founder of tech consultancy D/D Advisors. “This is the most complex consumer device anyone has ever made.” Goldberg explained that Apple had anticipated production inefficiencies and factored them into the price of the Vision Pro, which is why it is priced at $3,500. He believes that Apple will not turn a profit in the first year, but the company recognizes the importance of scaling up production over time.
Sony, one of the suppliers of the micro-OLED displays for the prototypes, expressed caution about the future expansion of the mixed-reality headset market. However, industry analysts remain optimistic about the Vision Pro’s potential and predict strong demand from Apple’s loyal customer base and high net worth individuals in the US.
Apple is collaborating with Korean display makers Samsung and LG on the development of the next-generation headset. Although Apple has considered using alternate display technologies, such as mini-LED, for a more affordable version of the device, it is currently insisting on micro-OLED displays for both the Pro and non-Pro models. Suppliers have yet to meet Apple’s expectations in terms of quality and quantity for the micro-OLED displays.
The reduction in production forecasts for 2024 has disappointed Luxshare, which had been preparing to assemble nearly 18 million units annually. Despite concerns within the industry, market intelligence group Canalys predicts that Apple will achieve a user base of 20 million within five years of the Vision Pro’s launch.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
