Apple cuts production of Vision Pro

In last month’s Worldwide Developers Conference, Apple unveiled Vision Pro, a mixed reality headset they characterize as a “spatial computing device”. Owing to its amalgamation of numerous cutting-edge technologies, this apparatus bears a lofty price tag and will not see the market until early next year. According to a report by Ars Technica, Apple has been compelled to curtail the production of Vision Pro, resulting in a limited quantity available at launch.

This information has been leaked by two individuals connected to Apple and Foxconn. The latter is poised to manufacture fewer than 400,000 units in 2024. Several industry insiders indicate Foxconn as the exclusive assembler for Vision Pro, thus suggesting an output of fewer than 400,000 units for 2024. Additionally, two Chinese suppliers, providing specific components for Vision Pro, assert that Apple only requested between 130,000 and 150,000 components for the first year. This is noteworthy as Apple’s initial forecast envisioned the sale of one million Vision Pro units within the first year.

A significant stumbling block for Vision Pro is the fabrication of the screens. The device requires two micro OLED screens and lenses, with a resolution unparalleled in comparable market products. Two sources divulged that these screens are jointly supplied by Sony and TSMC, with Apple expressing dissatisfaction with the suppliers’ production capacity, specifically concerning the yield rate of micro OLED screens.

Despite encountering challenges in the progression of the first-generation product, the report also discloses that Apple is already developing a second-generation device, inclusive of a more cost-effective version. Samsung and LG are involved in the production of this second-generation model, and Apple has explored more screen panel types, including mini LED, to reduce costs. However, the insiders also noted that even if micro OLED fails to meet expectations, Apple remains steadfast in its intention to incorporate micro OLED screens into non-Pro models.