A lot of news broke out! Apple reportedly plans to slash Vision Pro production next year

**Source: **Financial Association

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After seven years of precipitation and development, Apple's epoch-making mixed reality headset Vision Pro was officially released last month. However, the advent of this high-tech cutting-edge product that amazes the industry but is also expensive may be destined to be difficult...

**Apple has been forced to significantly lower its Vision Pro production forecast for next year, according to multiple sources with direct knowledge of the device's manufacturing process. According to multiple people with direct knowledge of the device's manufacturing process, the complexity of the headset's design and production difficulties is why Apple has been reluctant to scale back its production target, and plans to launch a cheaper version will also have to be delayed. **

The British "Financial Times" quoted two people close to Apple and Chinese contract manufacturer Luxshare Precision as saying that Apple is only preparing to produce less than 400,000 Vision Pro units in 2024. According to several industry insiders, Luxshare Precision is currently Apple's only assembler of this device.

In addition, the two exclusive Chinese suppliers of certain components for the Vision Pro stated that Apple only requires them to supply 130,000 to 150,000 units of accessories in the first year.

**Both of these expectations mean that production of the Vision Pro in the first 12 months will fall significantly short of Apple's previous internal sales target of 1 million units. **Analysts and industry experts said the lower forecast for sales reflects Apple's lack of confidence in ramping up production after a long delay in launching the device on schedule for many years.

Apple already said at its event last month that the $3,500 cutting-edge headset won’t go on sale until early next year, which would be a long way from the June 5 event itself. Many analysts also believe that the reason why Apple decided to release it after such a long time is more to solve supply chain problems than to leave developers more time to create applications for Vision Pro.

** Display is the biggest "obstacle"? **

** It is reported that one of the main obstacles Apple currently faces is the display on the device. **

In terms of hardware configuration, the screen of Vision Pro includes two micro-OLED displays with 23 million pixels and a single-eye resolution of up to 4K. In addition, Vision Pro has a whole OLED flexible outer screen facing outward. The inward-facing display has a higher resolution than anything currently on the market, while the outward-facing flexible outer screen projects the headset wearer's eyes to the outside world.

The tiny OLED displays used in the prototype demonstrated in June were provided by Sony and chipmaker TSMC, according to two people familiar with the matter.

Apple has been dissatisfied with the production capabilities of its suppliers, especially the output of flawless micro OLED displays, these people said. The display is the most expensive part of the Vision Pro package.

"These are predictable growing pains because the Vision Pro is by far the most complex consumer device," said Jay Goldberg, founder of technology consulting firm D/D Advisors.

Goldberg also pointed out that the higher-than-expected $3,500 price tag itself may have meant that Apple had factored in the cost of manufacturing inefficiencies, knowing that the Vision Pro's initial sales would be relatively low compared to established products in its product matrix. Yields will be extremely low.

"Someone has to pay for it," Goldberg said. "I think Apple entered this space with the expectation that volumes wouldn't be able to keep up. There's a lot of cutting-edge technology in Vision Pro, and they know it's going to take a while to scale. Apple knows they're in You can’t make money on that for the first year.”

Apple is already working on later-stage headsets, including a more affordable version that is expected to appeal to more mass-market consumers, two of the people said.

Apple is working with South Korean manufacturers Samsung and LG on this second-generation headset. To keep prices down, the iPhone maker has explored using other display technologies, including mini-LEDs, but two people said Apple is sticking with micro-OLED displays even on non-Pro headsets, despite all supplies so far. Businesses failed to meet their expectations.

** Luxshare Precision's stock price increase narrowed **

According to a person close to the assembler, Apple cut its 2024 Vision Pro production forecast, disappointing Luxshare, which has been trying to increase its production capacity so that it can produce nearly 18 million units per year in the next few years.

**After the above news came out, the A-share mixed reality sector fell back in the afternoon. ** As of press time, Luxshare Precision's increase has narrowed to 3.42%. This morning, Luxshare Precision hit 34.53 yuan, the highest since September last year.

Many industry analysts pointed out that the entire Asian headset supply chain did not get much boost from the advent of Vision Pro. Eddie Han, an analyst at Isaiah Research, believes that "Apple has not made a better product than the industry imagined... Manufacturers' confidence is not high."

But despite these setbacks, top market intelligence firm Canalys still believes Apple will have a headset user base of more than 20 million within five years of launching the Vision Pro. **

Canalys analyst Jason Low said, "Given the limited initial production, the Vision Pro may be snapped up by Apple's loyal fans and high-net-worth users in the United States once it is released. His current forecast is that Apple will produce 350,000 Vision Pro units next year, In five years this number will increase to 12.6 million units."