Apple Faces Production Challenges With Vision Pro Headset Leading To Drastic Cuts In Forecasts

(RTTNews) - Apple's highly anticipated Vision Pro mixed reality headset is facing production challenges, leading to "drastic cuts" in its production forecasts, according to a report by the Financial Times.

The $3,500 headset, expected to be released early next year, has been met with speculation about the lengthy gap between its unveiling at WWDC in June and the official launch.

Analysts suggest that this delay may be attributed to supply chain difficulties rather than providing developers with ample time to create apps for the device.

The report indicates that Apple has been dissatisfied with the manufacturing partners responsible for supplying the micro-OLED displays for the wearer's eyes and the outward-facing curved lenticular lens. While Sony and TSMC are said to have provided the micro-OLED displays for prototypes, it remains unknown who will be the supplier at scale.

Due to these production challenges, Apple is reportedly expecting to produce fewer than 400,000 units in 2024, according to sources close to the company and Luxshare, the Chinese contract manufacturer initially tasked with assembling the device. In contrast, two Chinese component suppliers have allegedly been asked to provide materials for only 130,000 to 150,000 units in the first year.

The Financial Times notes that both production estimates represent a significant reduction from an earlier internal sales target of 1 million units within the first 12 months. Analysts and industry experts believe that Apple's conservative forecasts reflect a lack of confidence in scaling up production, following years of missed deadlines for the device's launch.

In the meantime, Apple has reportedly postponed plans to introduce a more affordable version of the headset targeting the mass market. The company has been collaborating with Korean display makers Samsung and LG for the second-generation headset, exploring the use of mini-LED technology to lower costs. However, sources indicate that Apple continues to insist on using micro-OLED displays, even for the non-Pro headset, despite suppliers failing to meet expectations.

Bloomberg's Mark Gurman previously reported that Apple intends to release a more affordable version of its Vision Pro headset by the end of 2025, potentially named "Apple Vision One" or simply "Apple Vision."