Tuesday, July 4th 2023
Apple Reported to be Reducing Factory Output of Vision Pro AR Headset
The Financial Times believes that Apple is running into major production issues related to its Vision Pro mixed reality headset—insider sources claim that the mega-sized multinational technology company is adjusting internal sales goals for the $3499 AR/VR "spatial computer." Leadership had set an ambitious internal target of 1 million units sold in 2024, but the complexity of the system's design has apparently caused major setbacks for manufacturing partners. Apple is reported to have signed up with Luxshare, a Chinese contract manufacturer, to assemble Vision Pro headsets—insiders within both organizations reckon that only 400,000 units will be ready for sale throughout 2024. This number seems to be fairly optimistic given that Trendforce predicted that a mere 200,000 would be shipped next year.
FT gathered information from two other sources placed within the Chinese supply chain—they claim that Apple and Luxshare could encounter major component shortages in 2024, resulting in a production shortfall—with an estimated 130,000 to 150,000 finalized units. The article points out that the most complex (and costly) aspect of the headset lies in its micro-OLED display setup, that also includes outward facing lenses. TSMC and Sony are reported to be the suppliers of these parts (as featured on the prototypes), but Apple is allegedly not satisfied with low production numbers, and not enough batches are "free of defects." A cheaper version of the Vision Pro is apparently now on the backburner, since Apple is unlikely to recoup—factoring in R&D expenses—within the first year of the intial product's launch.
FT gathered information from two other sources placed within the Chinese supply chain—they claim that Apple and Luxshare could encounter major component shortages in 2024, resulting in a production shortfall—with an estimated 130,000 to 150,000 finalized units. The article points out that the most complex (and costly) aspect of the headset lies in its micro-OLED display setup, that also includes outward facing lenses. TSMC and Sony are reported to be the suppliers of these parts (as featured on the prototypes), but Apple is allegedly not satisfied with low production numbers, and not enough batches are "free of defects." A cheaper version of the Vision Pro is apparently now on the backburner, since Apple is unlikely to recoup—factoring in R&D expenses—within the first year of the intial product's launch.