Apple Reported to be Reducing Factory Output of Vision Pro AR Headset

[T0@st]

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.



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[eidairaman1]

Either it's not selling or they are trying to jack prices even higher

 

[natr0n]

that is expensive wow

 

[Soul_]

Who would have thought that there wouldn’t be much demand for such a high priced toy?

Can’t work with existing non-Apple ecosystems, can’t work with existing VR tech, can’t be afforded by wider market for these products…. Low demand, Surprised Pikachu!

 

[bonehead123]

Although Apple usually does a really good job forecasting/predicting/analyzing etc, but WOW, they sure blew it on this one IMHO !

I'm not sure what type of uber high-grade pharma their folks were partaking of when they wrote the PR about the Vision's prospects, but I sure would like to get some of it

 

[Chrispy_]

Apple doesn't seem to understand that their success has little to do with their hardware, and everything to do with their brand being a fashion statement and status symbol.

Wearing a dorky headset does not work as either a fashion statement or status symbol.

 

[Vayra86]

Apple doesn't seem to understand that their success has little to do with their hardware, and everything to do with their brand being a fashion statement and status symbol.

Wearing a dorky headset does not work as either a fashion statement or status symbol.

This, this and this again.

VR in its current form, and even AR, is still tied to a ridiculous, heavy, cumbersome, piece of gear that obscures your view and your emotions for the outside world. You might be physically in the room, but its 10x worse than being in the room with your eyes fixated on your phone. Now you're also waving your arms about like a retard and everyone else still has no clue what for.

Wake me up when they have compacted the whole thing down to a regular pair of glasses. Prior to that? DOA for any widespread use. A little demo? Sure. A virtual tour? Fine. Anything more? Nope

 

[Darmok N Jalad]

What I'm reading is that it's not about demand, but production difficulties. You have no choice but to ramp down production when suppliers can't get you all the parts. This thing was barely ready when they announced it, and I believe the complex nature of the hardware was one of the big reasons.

 

[claes]

Right… this thing doesn’t even have a release date and people are talking about sales. Just the mention of Apple seems to turn some forum member’s rage level to maximum

 

[dyonoctis]

Right… this thing doesn’t even have a release date and people are talking about sales. Just the mention of Apple seems to turn some forum member’s rage level to maximum

Apple philosophy about computers isn't "enthusiast friendly" . Those are products that you buy, turn on, and then use without thinking too much about what's going on behind the doors.
I used the 2019 iMac 27 for work for 6 months. I've read that the CPU was getting hot, that it wasn't always boosting at max speed. But I've never felt that it was slow while using it...Apple products are not perfect but they are really good in key points that make them "safe" to buy for many people. (Apple doesn't sell screens that aren't well calibrated, or barely cover sRGB for example. On the PC side you can easily end up with a shoddy screen if you don't know what you are doing)

This is checking out with the rumors that the product was just revealed too early. Employees tried to tell Cook that he should wait, but he didn't listened to them.

 

[Am*]

What I'm reading is that it's not about demand, but production difficulties. You have no choice but to ramp down production when suppliers can't get you all the parts. This thing was barely ready when they announced it, and I believe the complex nature of the hardware was one of the big reasons.

That's the picture they're no doubt trying to paint, but I'm not buying it. There's no way this product would have even been announced if they thought they wouldn't be able to meet the demand and recoup their R&D costs. Those contracts Apple signs with suppliers are iron-clad: "you need to ship X minimum number of finished units per quarter or penalties for you and we can jump ship to another supplier. If we cut that production, it's penalties for us." Sounds like they're trying to paint a picture that Ngreedia has been doing for these past 2 gens: launch handful of units = sell out instantly = free stock price boost, because "muh unprecedented demand" -- especially for a product this niche, which even the average "pro" Apple consumer isn't going to be interested in.

I don't doubt that they will be able to sell out of a million units worldwide during launch -- but will they still need that production capacity going once the launch hype dies down? I very much doubt it. It's too expensive and too niche.

 

[claes]

This is checking out with the rumors that the product was just revealed too early. Employees tried to tell Cook that he should wait, but he didn't listened to them.

Vey much this. Engineers left the project because they were worried about production issues and the product itself being underdeveloped. Allegedly Cook pushed up the timeline to finally release a unit — there has been reputable speculation that they’d launch this two years ago, and it keeps getting postponed.

I don't doubt that they will be able to sell out of a million units worldwide during launch -- but will they still need that production capacity going once the launch hype dies down? I very much doubt it. It's too expensive and too niche.

I think even 500,000 is a reach. Cook himself says it’s unaffordable and most VR headsets haven’t sold anywhere near that number.

 

[Darmok N Jalad]

That's the picture they're no doubt trying to paint, but I'm not buying it. There's no way this product would have even been announced if they thought they wouldn't be able to meet the demand and recoup their R&D costs. Those contracts Apple signs with suppliers are iron-clad: "you need to ship X minimum number of finished units per quarter or penalties for you and we can jump ship to another supplier. If we cut that production, it's penalties for us." Sounds like they're trying to paint a picture that Ngreedia has been doing for these past 2 gens: launch handful of units = sell out instantly = free stock price boost, because "muh unprecedented demand" -- especially for a product this niche, which even the average "pro" Apple consumer isn't going to be interested in.

I don't doubt that they will be able to sell out of a million units worldwide during launch -- but will they still need that production capacity going once the launch hype dies down? I very much doubt it. It's too expensive and too niche.

I guess that only works when you can jump to another supplier. I doubt the issues are with aluminum frames, batteries, or glass, but with chips and components that are very specialized, and getting them made somewhere else would be another huge production delay. Again, this product has been in the works a long time, with rumors of production issues causing delays all along the way. It was getting to the point of Apple needing it to be launched before it misses the window of when the hardware would be accepted at any high price point. Look at Intel Arc--in the works forever, and finally launched at way too late, so pricing was not good at all. Even then it doesn't appear to be selling great at low prices. Apple can certainly endure some R&D losses, but eventually boardrooms have enough of that. Cook pushing it out the door was not likely his decision entirely.

 

[eidairaman1]

This, this and this again.

VR in its current form, and even AR, is still tied to a ridiculous, heavy, cumbersome, piece of gear that obscures your view and your emotions for the outside world. You might be physically in the room, but its 10x worse than being in the room with your eyes fixated on your phone. Now you're also waving your arms about like a retard and everyone else still has no clue what for.

Wake me up when they have compacted the whole thing down to a regular pair of glasses. Prior to that? DOA for any widespread use. A little demo? Sure. A virtual tour? Fine. Anything more? Nope

Look up JHMCS /HMD, that helmet's visor was bulky and cumbersome for testing on the F-16.

 

[TheinsanegamerN]

Apple doesn't seem to understand that their success has little to do with their hardware, and everything to do with their brand being a fashion statement and status symbol.

Wearing a dorky headset does not work as either a fashion statement or status symbol.

It's also their software. The suite of integrated apple software works wonders for people whom cannot fathom installing an APK or configuring setting files.

These people are not going to be interested in AR/VR. All the techies who are got driven away from apple ages ago.

What I'm reading is that it's not about demand, but production difficulties. You have no choice but to ramp down production when suppliers can't get you all the parts. This thing was barely ready when they announced it, and I believe the complex nature of the hardware was one of the big reasons.

I believe they claimed something similar with the iphone 14 when production was cut due to utter lack of demand. As in foxconn suddenly forgot how to make phones.

Apple philosophy about computers isn't "enthusiast friendly" . Those are products that you buy, turn on, and then use without thinking too much about what's going on behind the doors.
I used the 2019 iMac 27 for work for 6 months. I've read that the CPU was getting hot, that it wasn't always boosting at max speed. But I've never felt that it was slow while using it...Apple products are not perfect but they are really good in key points that make them "safe" to buy for many people. (Apple doesn't sell screens that aren't well calibrated, or barely cover sRGB for example. On the PC side you can easily end up with a shoddy screen if you don't know what you are doing)

This is checking out with the rumors that the product was just revealed too early. Employees tried to tell Cook that he should wait, but he didn't listened to them.

Apple has also largely kept their OS the same with minor tweaks year to year, as opposed to MS' massive upheavals every 3-4 years.

 

[Minus Infinity]

The shipping estimates were always pure fantasy. The marketing team needs to be sacked immediately for pushing this nonsense. Even iTards have a limit.

 

[claes]

About 6 hours of reason before it turned back into a rage fest

 

[Hyderz]

i still dont get who is the target market for this vision pro?

 

[Chrispy_]

It's also their software. The suite of integrated apple software works wonders for people whom cannot fathom installing an APK or configuring setting files.

I do find it funny that many of the iPhone users at work use Google search, Google maps, Google Chrome, Google password manager, and often ask for my help in 'de-Apple-ing' their new phone. I'm always like "why don't you just buy a Pixel?" and they say "it works with my iPad and AppleTV better".

Part of it is the captive audience/stockholm syndrome. Once you're on Apple with more than a single device you're trapped in a walled garden and it doesn't matter how good other ecosystems are, you don't want to fight Apple. They'll never play nicely with Microsoft, Amazon, or Google so you're forced to either abandon your app and hardware purchases to get out, or just double-down and keep on Apple-ing.

 

[claes]

Here I am a system administrator who lives in terminals managing servers happily using Apple products in my home with no issues managing them all with a Linux server

you guys are boring