Since its release, Apple’s Vision Pro headset device has been expected to be a heavyweight in pushing the mixed reality (MR) industry forward. The device not only represented Apple’s expectations for the era of spatial computing, but also demonstrated its ambitions in the field of augmented reality (AR). However, over time, the device does not seem to be performing as well as expected in the market. reports on October 14, 2024 indicate that demand for the Vision Pro continues to be low due to the dual challenges of high price and lack of apps. Additionally, an October 24, 2024 report also mentions that Apple has decided to drastically reduce production of the Vision Pro and plans to stop production by the end of the year.
Vision Pro Release and Market Feedback
Apple’s Vision Pro debuted in June 2023 and was hailed as “the beginning of the era of spatial computing”. The device blends digital content with the physical world and utilizes visionOS, the world’s first spatial operating system, to deliver an unprecedented immersive experience. vision Pro is also equipped with a powerful hardware setup that includes an ultra-high-resolution 23MP display, dual-chip design of the M2 and R1, an advanced spatial audio system, and a wide range of sensors and cameras. It was designed to seamlessly integrate digital content with the real world, enabling users to interact with digital content naturally and intuitively through eyes, gestures and voice.
However, the Vision Pro’s high-priced strategy does not seem to have been positively received by the market. The Vision Pro reportedly retails for $3,499, a price far higher than other competitors in the market, such as the Meta Quest 3, which starts at $499. This price difference makes it difficult for the Vision Pro to become a mass-market favorite, instead appealing more to early adopters who are looking for cutting-edge technology.
In addition, Vision Pro’s app ecosystem faces challenges. Although Apple has a strong developer community, Vision Pro’s high price threshold limits its potential user base, which may discourage developers from creating new apps for the platform. In addition, Vision Pro’s hardware requirements mean that many existing iOS and iPadOS apps will need to be optimized to run on the new device, which undoubtedly increases developers’ workload.
According to the latest reports, Apple has informed its suppliers that production of the Vision Pro may be reduced in November 2024, and may even stop altogether. At the same time, Apple CEO Tim Cook also admitted that Vision Pro is not a product for the mass market, but for those consumers who pursue cutting-edge technology, a decision that may be based on a reassessment of market demand, as well as strategic adjustments to the future direction of the product. It is reported that Apple has slowed down the update of the Vision Pro, and plans to launch a cheaper version in 2025 to attract a wider user group.
Judging from market feedback, Vision Pro sales have not met Apple’s expectations. According to Counterpoint Research, Apple sold only about 370,000 Vision Pro units in the first three quarters of 2024 and expects to sell only about 50,000 more by the end of the year. This sales figure is well below Apple’s initial expectations, indicating limited market interest in the high-priced MR device.
Apple’s future MR strategy
While the discontinuation of the Vision Pro marks a setback for Apple in the MR space, it doesn’t mean that Apple is abandoning the market. Instead, Apple is adapting its MR strategy to better fit market demand and the competitive landscape. Apple plans to launch a more affordable MR headset in 2025 to appeal to a wider user base. It is reported that the device could cost around $2,000, aiming to fill a gap in the current market. Meanwhile, Apple is optimizing its supply chain to reduce costs and increase productivity. The proportion of mainland China’s supply chain for Apple’s Vision Pro has reportedly increased significantly to around 60 percent, indicating that Apple is strengthening its cooperation with Chinese suppliers.
In addition, Apple will continue to invest in the MR content ecosystem, including the development of more exclusive apps and services. A new App Store with a 3D interface is planned to allow users to download and browse apps in the iOS ecosystem. Innovations will continue to be made in MR technology, including interaction features such as full-color perspective, eye tracking, facial recognition, leg tracking, and more.
Overall, while the Vision Pro is technologically innovative, its high price and limited app ecosystem limit its market potential. Apple will likely learn from this experience and look for a more balanced price and features in future products to fulfill its long-term goals in the MR space. The future of the Vision Pro is full of uncertainty as 2024 draws to a close, but either way, the device will be remembered as a major attempt by Apple in the MR space.
