Apple Vision Pro

Last month, Apple announced Vision Pro mixed reality device. Apple Vision Pro offers a fully three-dimensional user interface controlled by user’s eyes, hands, and voice. This device is powered by visionOS, Apple’s spatial operating system. Apple Vision Pro will start at $3,499 in the U.S and will be available early next year.

Today, FT reported that Apple Apple has been forced to make drastic cuts to production forecasts for Vision Pro headset due to the complexity of the headset design and manufacturing difficulties.

According to FT’s sources, Luxshare, the Chinese contract manufacturer who will assemble the Vision Pro headset, is preparing to make fewer than 400,000 units in 2024. Also, some suppliers of certain components for the Vision Pro were given order for 130,000 to 150,000 units only. These numbers are well below the initial internal sales target of 1mn units in the first year.

The main highlight of Vision Pro is its ultra-high-resolution micro-OLED display system that packs 23 million pixels across two displays.

The micro-OLED displays were supplied by Sony and the TSMC. The yield of micro-OLEDs seems to be very low, making it expensive to manufacture. Also, Sony is reluctant to step up production significantly since the market itself is not yet established.

“We will be watching to see how much demand [for micro-OLED displays] will increase,” he said. “But I don’t think we will be aggressive [in producing] in the same scale as image sensors.” – Sony

Meanwhile, Apple is already working on later generations of the headset, including a more affordable version that is expected to appeal more to mass-market consumers, said two people with direct knowledge.

The tech behemoth is already turning gears on the next headset models, diverting resources from the original Vision Pro to the development of a second-generation high-end model and a more affordable variant.