Apple Cuts Vision Pro Headset Shipments by Half Due to Lower Than Expected Demand

Cupertino, California United States of America
Apple reduces Vision Pro headset shipments from 700-800k to 400k-450k units due to lower than expected demand.
Initial sales in the US have fallen significantly below expectations, causing Apple to scale back orders.
Ming-Chi Kuo reports that Apple has cut production for the Vision Pro due to low demand. The $3,500 mixed reality headset faced a lukewarm response from consumers.
Apple Cuts Vision Pro Headset Shipments by Half Due to Lower Than Expected Demand

Apple, the tech giant known for its innovative products, has recently faced a setback with its latest offering - the Vision Pro headset. According to reports from reliable sources, including Apple analyst Ming-Chi Kuo and various technology news outlets, Apple has reduced the number of Vision Pro units to be shipped in 2024 due to lower than expected demand. The initial plan was to ship between 700-800k units; however, this number has been revised downwards to 400k-450k.

The signs of decreased demand became apparent even before the Vision Pro's launch outside the US. Orders for the headset have been scaled back, indicating that sales in the US have fallen significantly beyond expectations. This conservative approach to headset demand is expected to continue when Apple introduces Vision Pro in new markets.

Ming-Chi Kuo, an influential analyst at TF International Securities, stated that Apple had cut production for the Vision Pro due to low demand. The $3,500 mixed reality headset was launched in the US earlier this year and faced a lukewarm response from consumers.

Despite early adopters being impressed by the Vision Pro's technical prowess, not enough of them have held on to their purchases past the return period. This trend could potentially impact Apple's future plans for lower-cost entry mixed reality headsets beyond 2025 or even cancel them altogether.

The Vision Pro is a significant investment in VR and AR technology, featuring advanced components like Micro OLED displays. However, if the device fails to gain traction in the market, it could have ripple effects on the adoption rate of these technologies and their associated components.



Confidence

85%

Doubts
  • Are there any specific reasons why demand for the Vision Pro has been lower than expected?
  • Could other factors, such as competition or marketing efforts, be contributing to the lackluster response?
  • Is it possible that Apple's pricing strategy is a factor in the low sales?

Sources

80%

  • Unique Points
    • Apple adjusting headset roadmap, future of lower-cost entry mixed reality headset beyond 2025 or possibly cancelled.
    • Early adopters wowed by Vision Pro’s technical prowess but not enough to keep all past return period.
  • Accuracy
    • Apple cut orders for Vision Pro before launch, now expects to sell 400,000-450,00 units in 2024.
    • Sales of Vision Pro in the US have fallen off significantly after initial preorders.
    • Vision Pro sales are expected to decline year on year in 2025.
  • Deception (10%)
    The author makes several assertions based on the analysis of an unnamed source. The author does not provide any evidence to support these assertions beyond the word of this source. This is a form of selective reporting and emotional manipulation as it creates a sense of urgency and importance around the supposed low demand for Apple's Vision Pro headset.
    • Apple cut orders for the Vision Pro even before it launched outside of the US.
    • Demand for the $3,500 Vision Pro dropped much lower than the company was expecting.
    • His sources claim that Apple now expects to sell only around 400,000 to 450,000 units in 2024.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

  • Unique Points
    • Apple analyst Ming-Chi Kuo claims Apple has cut Vision Pro production due to low demand
    • Shipments of Vision Pro are between 400,000 and 500,00 units for the year
    • Sales of Vision Pro in the US have fallen off significantly after initial preorders
  • Accuracy
    • Apple has cut Vision Pro production due to low demand
    • Apple now takes a ‘conservative view’ of demand outside of the US for Vision Pro
    • Vision Pro sales are expected to decline year on year in 2025
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The article contains several instances of appeals to authority and imprecise language. The author relies heavily on the analysis of Ming-Chi Kuo, an Apple analyst, without providing any context or evidence to support his claims about low demand for the Vision Pro headset. Additionally, there are several instances where the author uses imprecise language when discussing market expectations and sales figures for the Vision Pro. For example, 'Wider predictions for Vision Pro sales have varied significantly' and 'It was rumored that Apple initially hoped to sell 1 million of the devices in the first year on sale'. These statements do not provide clear or specific information about market expectations or sales figures.
    • Apple reduced shipments to between 400,000 and 500,00 units for the year
    • According to an Ars Technica report in June 2023, Wedbush Securities forecast around 150,ooo units in the first year of sales; Morgan Stanley expected sales of around 85o,ooo; and Goldman Sachs predicted sales as high as 5 million.
    • What seems clear is that the Vision Pro will make up a relatively small part of the total market for AR/VR devices
    • There's tremendous opportunity for businesses to reimagine what's possible using Apple Vision Pro at work
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

98%

  • Unique Points
    • Apple has reduced the number of Vision Pro units to be shipped in 2024 from 700-800k to 400k-450k.
    • Orders for Vision Pro have been scaled back before its launch outside the US, indicating demand in the US has ‘fallen sharply beyond expectations’.
  • Accuracy
    • Demand for Vision Pro dropped significantly lower than expected.
    • Shipments of Vision Pro are between 400,00 and 5oo,ooo units for the year
    • Sales of Vision Pro in the US have fallen off significantly after initial preorders
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to authority fallacy as it relies heavily on the statements of Apple analyst Ming-Chi Kuo without providing any counterarguments or evidence from other sources. The author also uses inflammatory rhetoric by stating that demand for the Vision Pro has 'fallen sharply beyond expectations.'
    • > Apple has dropped the number of Vision Pro units that it plans to ship in 2024, going from an expected 700 to 800k units to just 400k to 450k units, according to Apple analyst Ming-Chi Kuo.
    • , Orders have been scaled back before the Vision Pro has launched in markets outside of the United States, which Kuo says is a sign that demand in the U.S. has ‘fallen sharply beyond expectations.’
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication