Apple reportedly cuts Vision Pro production due to low demand

🌈 Abstract

The article discusses Apple's reported cuts to its Vision Pro headset shipment forecast for the rest of the year due to cooling demand.

🙋 Q&A

[01] Apple's Vision Pro Headset Shipment Forecast

1. What is the updated shipment forecast for Apple's Vision Pro headset?

• Apple has cut orders for the Vision Pro even before its launch outside the US.
• Apple now expects to sell only around 400,000 to 450,000 units in 2024, compared to the previous "market consensus" of 700,000 to 800,000 units.
• The demand for the $3,500 Vision Pro has dropped much lower than the company was expecting.

2. How is Apple adjusting its headset roadmap in response to the drop in demand?

• Facing the unanticipated drop in demand, Apple is now adjusting its headset roadmap.
• Apple may be pushing the future of a lower-cost entry mixed reality headset beyond 2025, if at all.

3. How has the performance of the Vision Pro affected the broader industry?

• Apple is often a trendsetter in new product markets, and if the Vision Pro doesn't do well, it could leave reverberations for the whole industry.
• Kuo believes that demands for certain VR and AR-specific components, like the Micro OLED displays, may not reach the adoption rate needed for mass production to make it into other devices.