Apple Vision Pro: Why Its £3500 Headset May Have Already Peaked

In the fast-moving tech world, even a giant like Apple can stumble. The Apple Vision Pro, hailed as a game-changing “spatial computer,” has reportedly hit a production standstill. With unsold stock piling up and sales targets slashed, the £3500 device seems to be struggling to find its place in the market.

What Is the Vision Pro?

Apple describes the Vision Pro as a “spatial computer” designed to seamlessly blend digital content with the physical world. Users can navigate apps and media through a combination of voice commands, eye tracking, and hand gestures, offering an immersive and futuristic experience.

The Vision Pro also supports spatial games like What the Golf?, Game Room, and Super Fruit Ninja. But while these features are undeniably innovative, Apple has struggled to clearly articulate a compelling usage case that justifies the device’s premium price tag.

A Production Halt Amid Unsold Stock

Reports from The Information reveal that Apple has ceased production of its Vision Pro headset due to lower-than-expected sales. By October 2024, Apple’s component manufacturers had prepared parts for over 500,000 units, but only about 370,000 were sold, leaving tens of thousands of unused components.

This aligns with earlier insights from the Financial Times, which suggested Apple had drastically scaled back its sales forecasts. Originally aiming for at least 1 million units sold in 2024, Apple adjusted expectations to fewer than 400,000 units by year’s end.

Now, Apple reportedly believes it has sufficient components to meet the Vision Pro’s lifetime sales, signalling a significant reevaluation of the product’s market potential.

The Struggles of Manufacturing Complexity

One of the Vision Pro’s biggest selling points—the dual micro-OLED displays and outward-facing lens—has also been one of its greatest challenges. Apple has reportedly faced production difficulties, making these high-end components difficult and costly to produce at scale.

While the Vision Pro boasts cutting-edge features like eye tracking, hand gestures, and voice navigation, these technological marvels come at a steep price, both in terms of manufacturing and for consumers.

At £3500, the Vision Pro’s price is roughly ten times that of Meta’s Quest VR headsets, making it a tough sell for all but the most dedicated tech enthusiasts.

While Apple has a history of premium pricing—often justified by its design and ecosystem—the Vision Pro’s cost places it out of reach for many VR enthusiasts. For comparison, Meta’s Quest 3 is priced at just £499, making it a far more accessible option for those dabbling in virtual reality.

Sales Expectations and Market Missteps

The Vision Pro’s underwhelming sales reflect a broader issue: the difficulty of carving out a new niche in the already crowded tech market. Despite being positioned as a groundbreaking device, the Vision Pro hasn’t resonated with consumers in the way Apple might have hoped.

The disconnect may stem from a lack of clarity around its practical applications. While the Vision Pro’s features are impressive, they don’t seem to offer a must-have functionality that’s missing from existing VR headsets, especially when considering its significantly higher cost.

Is the Vision Pro a Sign of Things to Come?

Despite its struggles, Apple isn’t giving up on spatial computing. Reports suggest the company is already planning follow-up devices, which could potentially address some of the Vision Pro’s shortcomings.

Whether this means a more affordable version or a redesigned product with clearer use cases remains to be seen. However, for Apple to succeed in this space, the company will need to better align its product offerings with consumer expectations and market realities.

The Vision Pro’s rocky rollout highlights the challenges of pushing the boundaries of innovation. While the device undoubtedly represents a technological leap, its steep price and manufacturing difficulties have hindered its ability to gain traction.

Apple’s next steps in the spatial computing market will be critical. Whether it’s refining the Vision Pro or introducing a new lineup of devices, the company will need to learn from these early missteps to better meet the demands of its audience.