Apple’s $3500-Vision Pro is so complicated that manufacturers are having issues in assembling them. Apple had initially planned to make about 1 million units of the Vision Pro for 2024. However, now, it will only manage to make 400,000 units
Apple has been forced to significantly reduce its production forecasts for the Vision Pro, its augmented-reality headset that was launched last month. The news comes to us from a report by the Financial Times.
Apparently, the design of Apple’s Vision Pro is so complicated and challenging that manufacturers are not able to maintain the yields that would have allowed them to produce the Vision Pro at the rate that would allow them to fulfil the forecast.
Production cut by 60 per cent
The design of the Apple Vision Pro is so complicated that the manufacturers have had to cut their production forecasts by up to 60 per cent. Luxshare, the Chinese contract manufacturer and the sole assembler of the device is expected to produce fewer than 400,000 units of the Vision Pro in 2024, as stated by two sources close to Apple and Luxshare. The initial target was 1 million.
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Initially, Apple had set an internal sales target of 1 million units for the first year. However, due to the production issues, the new projections indicate that they will only request enough components for 130,000 to 150,000 units from two China-based suppliers in the first year.
Cheaper version pushed back
The Vision Pro is priced at $3,499, making it over three times more expensive than the costliest headset in Meta’s line of mixed and virtual reality devices. Apple was also set to launch a cheaper version of the Vision Pro, but that has been pushed back, by at least a year, as per sources close to the matter
Despite these challenges, Apple’s market capitalization recently surpassed $3 trillion, reflecting investors’ confidence in the company’s ability to grow revenue, particularly as it explores new markets like virtual reality.
As of last Friday, shares of Apple were trading at $191.99, and the company remains the world’s most valuable listed company.
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