Apple Inc. is reportedly slashing production goals for its Vision Pro headset because manufacturers are struggling with its complex design.
The tech giant is expected to make less than 400,000 units for next year, according to sources close to Apple
AAPL,
and the Chinese electronic components manufacturer Luxshare, the only company so far charged with assembling the device, the Financial Times reported on Monday. The report said Apple had an internal target of selling 1 million units in the first year.
Neither Apple nor Luxshare would comment to the FT. MarketWatch has reached out to both companies.
Separately, two China suppliers charged with making specific components for the have been asked for parts to make just 130,000 to 150,000 headsets in the first year, the report said.
One of the biggest problems for manufacturers has been the micro-OLED —Organic Light Emitting Diode, a flat light emitting technology — displays, the headset’s most expensive part. The report said Apple was not happy with how many had been produced defect-free. Sony
SONY,
and chip maker TSCM
2330,
reportedly supplied those displays for the company’s June demonstration.
Neither Sony nor TSMC would comment on the report to the FT. MarketWatch has reached out to those companies.
The report quoted other sources said Apple was also struggling to make a more affordable version of the $3,500 headset — the company is working with Samsung and LG for the second-generation headset.
One analyst, Canalys’ Jason Low, told the FT that any scarcity of Vision Pro headsets will likely result in big demand by Apple faithful and well-heeled users.
Shares of Apple have risen 49% so far in 2023. The tech giant closed Friday above a $3 trillion valuation, the first time to finish a trading session above that milestone.
Opinion: Vision Pro could be Apple’s biggest hit since iPhone, but that won’t be known for years
This story originally appeared on Marketwatch
