Apple, the tech giant known for its innovations, appears to be shifting its focus within its Vision product line.
Originally planning to split the Vision line into two models — a high-end “Pro” model and a more affordable standard version — Apple is now reportedly deprioritizing the next generation of the Vision Pro headset.
Changing priorities for the Vision Pro
In the past year, Apple has gradually assigned fewer employees to the Vision Pro project. The company initially focused on reducing the cost of the first-generation model’s components and developing an upgraded display for the subsequent model.
However, a recent report by The Information suggests that Apple has told at least one of its suppliers to halt work on the next-generation Vision Pro headset.
Despite this shift, Apple is still advancing with plans to release a more affordable Vision headset, which will have fewer features than the Pro model.
Development of a budget-friendly Vision headset
The development of a cheaper Vision device, codenamed “N109,” began in 2022. Apple’s goal for this model is to price it similarly to a high-end iPhone, which retails for up to $1,600.
Initially, Apple aimed to release this model by the end of 2024, but as of early 2023, the company had not finalized a prototype.
The challenge lies in reducing the device’s costs without compromising too many features. Consequently, the release date is likely to slip beyond its revised target of the end of 2025.
Apple aims to retain the high-end display components found in the Vision Pro for the budget model. These displays are among the most expensive parts of the device.
Previous reports by MacRumors indicated that the cheaper model would feature the same high-quality displays but with fewer cameras, a simpler headband, and smaller speakers. Apple also intends to make this headset at least one-third lighter than the Vision Pro.
Production challenges and demand forecasts
A key supplier for the Vision Pro components reportedly cut production by 50% in May after receiving forecasts from Apple predicting weaker-than-expected demand.
Information from this supplier indicates that Apple has produced no more than 500,000 Vision Pro units this year, with no plans to significantly increase production through August.
The supply chain insights reveal that Apple has paused the development of the premium Vision headset, signaling a potential reevaluation of the product line’s future.
This decision seems to follow other reports suggesting that sales of the $3,500 Vision Pro, launched in February, have not met Apple’s expectations.
Looking ahead: The future of Apple’s Vision line
Despite the apparent pause in the Vision Pro’s development, Apple continues to work towards launching a more budget-friendly Vision model. This version will have reduced features compared to the Vision Pro, with the aim of making it more accessible to a broader audience. Apple is targeting a release date by the end of 2025 for this budget model.
The development and potential release of a cheaper Vision headset indicate Apple’s strategy to capture a larger market share in the AR/VR space.
By offering a range of products at different price points, Apple could cater to both high-end users seeking advanced features and budget-conscious consumers interested in experiencing AR/VR technology.
Market implications
Apple’s decision to adjust its focus within the Vision product line highlights the company’s adaptive approach to market demands and consumer preferences. The tech industry is highly competitive, and the AR/VR market is still in its early stages.
By recalibrating its strategy, Apple may be positioning itself to better compete with other tech giants and emerging startups in the AR/VR space.
The shift also underscores the challenges and uncertainties inherent in developing and marketing new technology products.
Why the strategic shift?
While the Vision Pro’s high price point and advanced features appeal to a niche market, broader adoption may depend on more affordable and accessible options.
By focusing on cost reduction and accessibility, Apple aims to broaden its customer base and strengthen its position in the competitive tech landscape.
The upcoming years will be crucial for Apple as it navigates these challenges and opportunities, with the potential for new product launches to shape the future of AR/VR technology.
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