Apple has made the decision to reduce its production goals for the highly anticipated Vision Pro headset. This comes as manufacturers struggle with the complex design of the device. Originally, Apple planned to release one million units in 2024, but now it will only deliver 400,000. Surprisingly, Apple’s Chinese manufacturer claims that the tech giant only requested components for approximately 130,000 to 150,000 units.
The Apple Vision Pro has generated significant buzz as the “world’s first spatial computer”, but it seems that even groundbreaking technology is not immune to production issues. These challenges shed light on the difficulties that tech companies face when launching new products. In this article, we will explore the reasons behind Apple’s decision to cut its initial production target for the Apple Vision Pro, as well as opinions from other tech experts.
One of the main problems with manufacturing the Apple Vision Pro is the device’s intricate design. The multiple cameras and curved lenses that detect incoming people and project them through virtual reality add to the complexity. Furthermore, the display resolution of the device surpasses anything currently on the market. Despite these advanced features, Fortune reports that Apple only requested a relatively small number of units, which suggests that the complex design is posing challenges for mass production.
Additionally, there have been reports that Apple is collaborating with Korean display makers to develop a more affordable version of the Vision Pro. The company has also explored alternative display technologies like mini-LED, but it appears that Apple is committed to using its preferred technology, even for the lower-cost variant.
Quality control has also been an issue in the production of the Apple Vision Pro. Suppliers have struggled to produce defect-free units, which has led to further complications in the manufacturing process. This production cut has been a disappointment for Luxshare, Apple’s manufacturing partner, as they expected to produce 18 million units annually.
Despite these setbacks, there are mixed opinions from tech experts regarding the Apple Vision Pro. Some analysts, like Eddie Han from Isaiah Research, believe that the headset has not met expectations and that manufacturers lack confidence in its success. However, others, like Jay Goldberg from D/D Advisors, remain optimistic and see this as normal growing pains for a highly complex consumer device.
Goldberg also suggests that the high price tag of $3,499 reflects Apple’s anticipation of production inefficiency costs. Apple knew that mass production would take time, and therefore, compensated for these projected costs with a higher price point. However, this steep price may deter even the most loyal Apple fans from purchasing the product.
Market intelligence firm Canalys predicts that the Apple Vision Pro will gain over 20 million users within five years of its launch. Analysts believe that despite the limited production numbers, the device will be highly sought after by Apple enthusiasts and high net worth individuals in the US. Canalys projects that Apple will produce 350,000 units next year and reach a production volume of 12.6 million units five years down the line.
In conclusion, Apple has reduced its production target for the Apple Vision Pro due to manufacturing complexities. This groundbreaking device has faced challenges in production, but there is still potential for a strong demand that could encourage Apple to produce more units. However, the high price tag may be a deterrent for many consumers.
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