What was Apple CEO Tim Cook thinking?

Releasing the Vision Pro headset earlier this year for the price tag of $3,899 (for a 1TB version) in a period where Goldman, including ourselves, has shown the American middle class has quickly deteriorated under Bidenomics – was likely a terrible idea. 

Perhaps Cook has since gotten the memo amid slumping demand, as a new report from The Information suggests Apple suspended work on the second-generation Vision Pro and diverted efforts to focus on a cheaper version.

Apple has told at least one supplier that it has suspended work on its next high-end Vision headset, an employee at a manufacturer that makes key components for the Vision Pro said. The pullback comes as analysts and supply chain partners have flagged slowing sales of the $3,500 device.

The company is still working on releasing a more affordable Vision product with fewer features before the end of 2025, the person involved in its supply chain and a person involved in the manufacturing of the headsets said. Apple originally planned to divide its Vision line into two models, similar to the standard and Pro versions of the iPhone, according to people involved in its supply chain and former Apple employees who…

One Vision Pro supplier allegedly slashed production by 50% in May after receiving a dismal demand outlook from Apple. The report also said that Apple has likely produced less than half a million units, with no further plans to ramp up production through August.

If the report is accurate, it underscores how Apple mispriced the Vision Pro – and even with BNPL loans – consumers still didn’t bite.

This is not entirely surprising, as Ming-Chi Kuo, an analyst at TF International Securities, recently noted a downward revision in Apple’s sales expectations, from a ‘market consensus’ of 700k to 800k units to a more modest 400k to 450k units in 2024.

Google searches of “Vision Pro” show the headsets appear to be just a fad. 

Here’s what X users are saying about the report…

It’s almost like pricing a consumer headset for $3,500 was a bad idea LOL

— Lugo (@1ordlugo) June 18, 2024

So Apple stopped working on the headset that no one asked for, was ridiculously priced during financial hard times, had a form factor that was the opposite of what VR requires and included a ton of useless or unecessary features/options that drove the cost way up ? Great !

— max (@iambrianoconnor) June 18, 2024

Shocker. Product no one wants which costs more than any reasonable person can afford doesn’t sell well. In other news…it gets dark at night.

— SpannersUK (@AceRimmerUK) June 18, 2024

Tim Cook is a disaster

— Martin (@martingeluz) June 18, 2024

Good! It’s insanity to pay €4k for the device! Far too expensive for normal people. It’s a product for the rich made by millionaires. Completely out of touch!

— Mark David (@MarkOfBecking) June 18, 2024

So, how much will a ‘more affordable’ Vision Pro cost?