Apple has reportedly halted production of its first-generation Vision Pro mixed reality headset, following earlier signs of weakening demand. Industry sources indicate that manufacturing of the $3,499 device may have ceased as 2024 draws to a close.
The production slowdown began in early summer, with Apple apparently accumulating sufficient inventory to meet projected demand through 2025. Reports suggest that suppliers have produced components for 500,000 to 600,000 headsets, with some factories suspending parts production as early as May due to lower-than-expected sales forecasts.
Luxshare, Apple's primary assembly partner for the Vision Pro, was instructed to wind down production in November. The Chinese manufacturer's daily output had already dropped to around 1,000 units - half of its peak production rate.
While manufacturing lines remain intact should demand increase, Apple appears to be shifting focus. The company has reportedly paused development of its original second-generation Vision Pro for at least a year, instead prioritizing work on a lower-cost headset variant.
However, even the planned affordable model faces conservative projections. Apple has asked suppliers to prepare for building 4 million units over the product's lifetime - half the target set for the original Vision Pro.
Industry analysts attribute the Vision Pro's challenges to its premium pricing and limited content ecosystem. Apple CEO Tim Cook previously acknowledged the device's position as an "early-adopter product" rather than a mass-market offering.
Looking ahead, Apple may still release an incremental update to the current Vision Pro, potentially featuring an M5 chip upgrade while reusing existing components to address surplus inventory. This refreshed model could arrive between fall 2025 and spring 2026, according to industry observers.