Apple slashes Vision Pro production to 1,000 units daily as demand cools

According to The Information, Apple has decided to slow down production on its Vision Pro headset, with reports suggesting they might even stop making it by November 2024. Some suppliers involved in making the parts have mentioned that things have cooled off since summer.

At Luxshare, Apple's Chinese manufacturing partner that handles final assembly, the number of headsets being made daily has dropped to about 1,000 units, which is much lower than their previous rate of 2,000 per day. The current component inventory glut suggests a capacity of 500,000 to 600,000 headsets.

This slowdown aligns with what Apple CEO Tim Cook was saying not too long ago. He pointed out that the Vision Pro, with its base $3,500 price tag, is mainly aimed at early adopters while the broader ecosystem is still being developed.

Even though Vision Pro has been praised for its display, gesture controls, and the fact that it doesn't need controllers, it's running into some trouble with developers' interest. Big platforms like Netflix and YouTube haven't jumped on board yet; they're just steering people towards their websites instead of making dedicated apps.

The production setup is still flexible though, so Apple can ramp things back up if demand picks up. Plus, their components could be used in future models, maybe with better processors or even a cheaper version. There’s talk that Apple has shifted its focus to working on a more affordable Vision Pro model, which could potentially attract broader consumer interest and encourage greater developer participation.