According to a recent report from the Financial Times, Apple is facing significant production cuts for its Vision Pro augmented-reality headset due to the complexity of its design. Sources with direct knowledge of the process revealed that Apple had initially aimed to sell 1 million units of the headset within the first year. However, due to manufacturing challenges, the company has been forced to revise its production forecasts.
Luxshare, the Chinese contract manufacturer responsible for assembling the Vision Pro, is now expected to produce fewer than 400,000 units in 2024. This significant reduction in production has reportedly disappointed Luxshare, as the company had planned to increase its capacity to manufacture approximately 18 million units annually in the coming years.
The manufacturing process has been particularly challenging due to the production of micro-OLED displays for the headset. Apple has encountered difficulties in achieving a satisfactory yield of defect-free micro-OLEDs. This issue has contributed to the company’s decision to scale back its production estimates for the device.
Apple has reached out to two China-based suppliers to secure enough components for an estimated 130,000 to 150,000 units in the headset’s first year. Furthermore, the development of a more affordable version of the Vision Pro has been delayed as a result of these challenges.
Both Apple and Luxshare have yet to comment on the report, and further details regarding the specific production difficulties have not been disclosed.