Apple's production projections for the Vision Pro augmented reality headset have seen significant difficulties, according to a report.
The report underlines the complexity of the design as the cause of the significant reduction, citing persons knowledgeable about the Apple Vision Pro production process, Reuters reported, citing the Financial Times.
The Vision Pro is expected to be produced by Luxshare, Apple's only device assembler, in quantities of less than 400,000 units in 2024, falling short of Apple's original internal sales goal of 1 million devices in the first year.
The high starting price of $3,499 for Apple's augmented reality headset has already limited its potential market.
Despite acknowledging the possible setback, Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown, said that Apple has previously overcome post-launch difficulties. She noted that when customers have given a product a comprehensive evaluation, the tech firm has a successful recovery history.
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Potential Buyers May Face Difficulties in Purchasing Apple Vision Pro
The manufacturing process has been incredibly challenging since micro-OLED screens are being produced. The complexity and delays have apparently increased due to Apple's dissatisfaction with the yield of defect-free micro-OLEDs. Consequently, preparations for a more cost-effective gadget model have been put off.
As Apple's contracted manufacturer, Luxshare is essential to creating the Vision Pro. The Guangdong-based firm will be in charge of assembling a number of units, and two vendors in China have been contacted to provide parts for 130,000 to 150,000 units in the first year, as per The Hindu's report. These numbers show a considerable decline from Apple's initial sales goal.
The reduction in the output projection reportedly upset Luxshare, as plans include increasing its production capacity to 18 million units annually.
Luxshare and Apple have yet to respond to the report.
The Vision Pro debut has been repeatedly postponed, but it is anticipated that users will be able to purchase the gadget early in 2019.
Manufacturing problems, low initial production numbers, and a high asking price might make it difficult for potential buyers to get a Vision Pro upon its eventual release, per Mashable.
Meanwhile, the shares of Apple took a dip of 0.3%. On Friday, the tech giant hit a milestone by becoming became the first company with a $3 trillion market value.
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