CUPERTINO, Calif., Feb. 29, 2024 – Apple is reportedly scaling back production of its Vision Pro headset, a move signaling early struggles for the company’s foray into spatial computing. The tech giant also slashed marketing efforts for the device by over 95% last year, according to market intelligence firm Sensor Tower.
Vision Pro’s Rocky Start: A pricey Gamble?
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Analysts suggest the $3,499 price tag and limited functionality are hindering widespread adoption of Apple’s new headset.
- Apple has not publicly disclosed Vision Pro sales figures.
- Market research firm IDC estimates only 45,000 units were sold in the final quarter of 2023.
- Apple’s Chinese manufacturer, Luxshare, reportedly halted production in early 2025.
- The company is now prioritizing AI-enabled wearable devices.
While Apple continues to enjoy robust sales of iPhones, iPads, and laptops, the Vision Pro has faced a sluggish reception. The headset, which allows users to interact with apps using eye movements, launched with considerable fanfare in 2023, with Tim Cook proclaiming it would blend “digital content into the space around us” and usher in an era of “spatial computing.”
Echoes of Google Glass
The Vision Pro’s challenges are reminiscent of Google Glass, launched in 2013. Early adopters of that device faced social stigma, earning the unflattering nickname “glassholes.” consumers have balked at the Vision Pro’s high cost, and reviewers have criticized its weight, discomfort, and perceived lack of practical applications. Concerns were also raised after users were filmed wearing the headsets while driving.
What are the biggest hurdles for virtual reality headsets? Cost, form factor, and a limited selection of native apps are key factors preventing broader adoption, according to Morgan Stanley tech analyst Erik Woodring.
Even enthusiasts acknowledge the headset’s niche appeal, with some describing the experience as isolating. The limited number of available apps – currently around 3,000 – compared to the app ecosystems of smartphones and tablets, is also seen as a deterrent.
A Shift Towards AI
Reports indicate Apple has paused development of its next virtual reality iteration, shifting focus to wearable AI devices. This move mirrors a similar strategy by Meta, Mark Zuckerberg’s company, which is also scaling back its metaverse ambitions and investing more heavily in AI glasses and other wearables. Meta confirmed last month it was “shifting some of our investments from metaverse towards AI glasses and other wearables.”
Meta’s virtual reality Quest headsets, while less advanced than the Vision Pro, are considerably cheaper at £419 each and currently dominate the market with an 80% share. Counterpoint Research predicts a 14% reduction in annual sales of virtual reality headsets overall.
Apple has declined to comment on reports regarding production cuts. If confirmed, this would represent a rare commercial setback for the company.
FAQ
- What does the Vision Pro cost? The Vision Pro starts at £3,199 ($3,499).
- How many Vision Pro headsets were sold last quarter? IDC estimates approximately 45,000 units were sold in the last quarter of 2023.
- Is Apple still developing virtual reality headsets? Reports suggest Apple has paused development of its next iteration in favor of AI-enabled devices.
