A new report from The Information suggests Apple might suspend production of its Vision Pro mixed-reality headset as early as next month due to very weak demand. Some Asian suppliers have already reduced or stopped producing headset components since the summer. Additionally, the development of the next Vision Pro model has been delayed, while a more affordable headset is slated for the retail market by the end of 2025. 

The first version has met weak demand, a result of its high price and the lack of apps available on it. Employees at three Vision Pro suppliers that supply a range of electrical and mechanical components told The Information they have so far built enough components for between 500,000 and 600,000 headsets.

One of the employees said their factory suspended production of Vision Pro components in May based on Apple’s weak forecasts, and their warehouse remains filled with tens of thousands of undelivered parts.

. . . 

In recent weeks, Apple has told Luxshare, which is responsible for the Vision Pro’s final assembly, that it might need to wind down its manufacturing in November, according to an employee at the Chinese manufacturer. Luxshare is making around 1,000 Vision Pro units a day, down from a peak of around 2,000 units a day, the employee said. It has assembled a total of between 500,000 and 600,000 headsets since production began last year ahead of its February release in the U.S., the employee said.

Apple’s move into the mixed-reality headset market with its $3,500 Vision Pro seems poorly timed, given the financial strain on many low- to mid-tier consumers. High inflation and elevated interest rates, primarily attributed to failed Bidenomics, have left millions of cash-strapped Americans in financial misery as they struggle to cover basic expenses like rent, groceries, car payments, insurance, and phone bills.

The Vision Pro flop is nothing new to readers. We commented on a WSJ note earlier this month that showed the dismal demand for the headset means no ‘killer app’ anytime soon:

There has been a significant slowdown in new apps coming to the Vision Pro every month. Only 10 apps were introduced to the Vision App Store in September, down from the hundreds released in the first two months of the device’s launch, according to analytics firm Appfigures.

It has counted around 1,770 apps available for the Vision Pro in the App Store as of September. Only 34% of those apps are built specifically for the Vision Pro, while the rest are versions of existing Apple apps that have additional Vision Pro functionality, Appfigures said.

Apple said in August that there are more than 2,500 apps built for the Vision Pro. Appfigures said the discrepancy between these two figures could be, in part, because some apps aren’t used enough to register on usage charts, making them difficult for the analytics firm to detect.

A visualization from WSJ shows a considerable decline in the number of new apps released for Vision Pro every month since its launch.

Source: WSJ

We’ve previously noted…

Vision Pro’s Success Hinges On Cheaper Version As Consumers Balk At $3,500 Price Tag https://t.co/DlTGIIKHNB

— zerohedge (@zerohedge) July 11, 2024

Even from the start. 

Audible groans when the price for Apple’s Vision Pro is announced.

$3500 to disconnect from reality. No thanks. pic.twitter.com/nFLSlCtWZ7

— Citizen Free Press (@CitizenFreePres) June 6, 2023

Just like the AI-enabled iPhone 16, another bust for Apple.