Apple scales back Vision Pro. Is it the end of VR?

Is it the end of the road for Apple’s Vision Pro? After debuting the VR product in February, reports indicate that the tech giant may be slowing down or even halting production of its spatial computing device as demand wanes. While initial buzz suggested a strong future for the mixed-reality gadget, sales figures tell a different story. Counterpoint Research estimates that Apple sold only 370,000 Vision Pro units in the first three quarters of 2024, falling short of sales expectations of 700,000 to 800,000. According to The Daily Mail, an employee at Luxshare — the Chinese manufacturer handling Vision Pro’s final assembly — claims that Apple has informed the company to prepare for a potential production wind-down by the end of November. Luxshare has reportedly already halved its assembly output from 2,000 units a day to 1,000. For a device initially touted as a game-changer for both entertainment and retail, these developments suggest Apple’s Vision Pro may be struggling to find its footing in an increasingly competitive market. Initial speculation about the Vision Pro’s fate began swirling earlier this year, when The Information reported that a supplier responsible for key components of the headset had halted production. However, Apple may not be ready to abandon its mixed-reality ambitions entirely. Reports suggest that the tech giant may be planning to develop a pared-down version of the Vision Pro, featuring fewer advanced capabilities and a more accessible price point. A potential launch is expected before the end of 2025. Once hailed as the next big thing in retail, the Vision Pro’s uncertain future deals a blow to brands that heavily invested in the platform this year. Global luxury players like Gucci, Balenciaga, and MyTheresa partnered with the headset early on, creating new digital experiences tailored to their image, alongside retailers such as Wayfair, StockX, J.Crew, and E.L.F. Cosmetics. Following its China debut in June, priced at 29,999 RMB ($4,128), domestic giants including Taobao, Kuaishou, and Douyin also embraced the device. Even with the possibility of discontinuation looming, brands appear to be pressing ahead with their Vision Pro strategies. This week, Balenciaga unveiled an update for its Vision Pro app, introducing an “Accessories” tab where users can explore 3D-rendered pieces from the Summer 25 collection using spatial gestures. The update also features a narrated “10 Avenue George V” virtual tour of the brand's Paris couture salon, complete with subtitles in English and Chinese. But as the global polycrisis continues to squeeze discretionary spending, $3,500 headsets like Apple’s Vision Pro are struggling to make the cut for most consumers. It’s also fallen short on a lot of its promises. In the eight months since its public existence, owners have complained of inconsistent eye and hand tracking – a critical feature of the headset – as well as clunkiness and impracticality. The device also became the subject of countless memes when it was first launched at Apple’s 2023 Worldwide Developers Conference (WWDC23), a factor that may have further dented its reputation. The Vision Pro’s flop is a hit for the virtual reality sector, which has been slowly gaining traction in recent years. But not all is lost for the tech; Rival Meta’s Quest 3 headset is reportedly selling better than expected, Zuckerberg told investors in August, while Xydrobe’s immersive VR pods are performing well. Still, widespread adoption remains a challenge. Could a more accessible version of the Vision Pro find greater success? All signs point to yes: Meta’s Quest 2, for instance, has reportedly sold over 20 million units, with its thinner, more affordable, and ergonomically improved design resonating with consumers. Meta’s public success shows that demand for mixed-reality hardware still clearly exists – it’s just a matter of delivering the right product at the right price.

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Apple scales back Vision Pro. Is it the end of VR?