Apple Inc., the technology giant known for its innovative products, is facing significant hurdles in the production of its highly anticipated mixed-reality Vision Pro headset. According to sources close to the matter, manufacturers are struggling with the device’s complex design, leading to a revision of production targets. The Financial Times reported that Apple is now preparing to manufacture fewer than 400,000 units of the $3,499 headset in 2024, a substantial reduction from the previous internal sales target of 1 million units in the first year.
The intricate nature of the Vision Pro headset’s design has posed difficulties in the creation of high-resolution inward displays while projecting the wearer’s eyes to the outside world. These displays, which feature two micro-OLED screens and an outward-facing curved “lenticular” lens, are the most expensive component of the headset. Suppliers have been struggling with productivity and yield issues, particularly in producing micro-OLEDs free of defects.
Revised production targets and delayed affordable version
To overcome these challenges, Apple has been working closely with Luxshare Precision Industry Co., a Chinese contract manufacturer responsible for assembling the device. Luxshare is currently the only assembler of the Vision Pro headset. However, the revised production targets indicate a need for more confidence in scaling up production, which has been a persistent issue for Apple in launching the device.
Furthermore, plans for a more affordable version of the headset have been pushed back. Apple is collaborating with Korean display makers Samsung and LG on the development of the second-generation headset, which aims to appeal to mass-market consumers. Although Apple has explored alternative display technologies, such as mini-LED, it insists on using micro-OLED even for the non-Pro version, despite suppliers failing to meet expectations thus far.
The setbacks in production forecasts have disappointed Luxshare, which had been preparing to manufacture nearly 18 million units annually in the coming years. Industry analysts express concerns about the manufacturing yield and Apple’s ability to meet demand. However, Canalys, a market intelligence group, remains optimistic about the device’s future success. It predicts that Apple will surpass a user base of 20 million within five years of launch, with initial sales driven by pre-orders from loyal Apple fans and high-net-worth individuals in the US.
As Apple grapples with the challenges of producing the Vision Pro headset, it is worth noting that the company recently achieved a historic milestone on Wall Street. Apple’s market value surpassed $3 trillion, solidifying its position as one of the most valuable companies in the world. The Vision Pro headset represents Apple’s latest endeavor to sustain sales momentum and propel the mixed-reality industry into the mainstream.
Looking ahead, Apple is determined to overcome the production obstacles and deliver a groundbreaking product to its customers. Despite the difficulties faced during the initial stages, the Vision Pro headset holds significant potential to revolutionize the way people interact with technology. Apple’s commitment to innovation and its loyal customer base make it likely that the Vision Pro headset will eventually find success in the market, albeit with a slower production ramp-up than initially anticipated.
