Apple's ambitious foray into the world of augmented reality took a hit as production cuts were announced for the Apple Vision Pro, the company's first "spatial computer." Initially launched in the US earlier this year with a hefty price tag of $3,499 (approximately Rs. 2.9 lakh), the mixed reality headset is slated for release in other markets soon.
Production Cut Details-
Renowned analyst Ming-Chi Kuo from TF Securities International revealed that Apple has significantly slashed production numbers for the Apple Vision Pro. Previous industry estimates ranged from 700,000 to 800,000 units, but Apple now anticipates selling only 400,000 to 450,000 units. This reduction is attributed to a decline in demand for the mixed reality headset since its launch.
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Reasons Behind Production Cut-
Kuo's analysis points to Apple's conservative outlook on customer demand as the primary reason for scaling back production. Demand in the US market fell below the company's expectations, prompting a reevaluation of global demand projections. Consequently, Apple foresees a year-on-year decline in Vision Pro shipments for the upcoming year.
Impact on Future Plans-
The subdued demand has prompted Apple to reassess its roadmap for augmented reality products. While a successor to the first-generation Apple Vision Pro was initially slated for a 2025 release, Kuo suggests that this timeline might be pushed back due to market dynamics. The company's plans for expanding the Vision Pro's availability beyond the US, including its launch in China in 2024, remain uncertain.
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Conclusion-
Apple's decision to scale down production of the Apple Vision Pro underscores the challenges of penetrating the mixed reality market. Despite significant anticipation, lower-than-expected demand in the US has necessitated a recalibration of Apple's augmented reality strategy. As the company navigates these challenges, consumers and industry observers await further updates on the future of Apple's spatial computing endeavors.