Apple has reportedly halted the development of its future Vision Pro 2 headset, opting instead to focus on a more affordable variant. The decision comes as the company grapples with the high production costs associated with the Vision Pro, which was released on February 2 in the US for $3,499 and will be released on July 12 in other countries. According to insiders familiar with the matter, Apple is not expected to manufacture more than 500,000 Vision Pro units this year, casting doubt on the device's ability to gain widespread adoption at such a premium price point. The tech giant's suppliers have already begun scaling back production, with one supplier reducing output by 50% in May due to forecasts of weaker-than-expected demand.

While the Vision Pro promised to deliver a groundbreaking mixed-reality experience, its excessive cost effectively priced it out of reach for the mass market. Recognizing this barrier, Apple has reportedly decided to abandon the development of the costlier "Pro 2" model and instead channel its efforts into creating a more budget-friendly "Vision" variant. The new device is expected to feature fewer cameras, simpler speaker systems, and a streamlined headband design, all aimed at reducing production costs. However, sources indicate that Apple is struggling to significantly lower the costs of key components, such as the display, which could further delay the launch of the successor model. Nevertheless, the company's goal is to create a mixed-reality headset priced around the level of a high-end iPhone, approximately $1,600, and launch the cheaper headset in late 2025.