Apple suspends the development of the next generation of high-end VR headsets, focusing on releasing a more affordable Vision Pro next year

According to reports, Apple has suspended the development of Vision Pro, signaling a significant strategic adjustment in the high-end head-worn device market.

On Tuesday, June 18th, media reports revealed that employees of a supplier manufacturing key components for Vision Pro disclosed that Apple has informed at least one supplier to halt the development of the second-generation high-end Vision head-worn device. A former Apple employee also disclosed that Apple has gradually lowered the development priority of Vision Pro over the past year and reduced the project's staff. However, Apple has not officially responded to this news.

This decision comes after Vision Pro recently expanded internationally and previewed the features of VisionOS 2. Apple made this decision because sales of the $3,500 Vision Pro device have started to slow down, and Apple is reevaluating its product line and research focus. Instead, Apple is following Meta's lead by focusing on developing a less feature-rich and more affordable Vision version, planned for release by the end of 2025.

Following the announcement, Apple's stock price plummeted, dropping nearly 1.5% intraday.

Market feedback on Vision Pro has been poor. After launching in the United States in February, independent reviewers criticized Vision Pro for its lack of content, poor comfort, and limited use cases, leading some users to stop using the device. In response, Apple announced earlier this month the launch of a new version of the Vision Pro operating system to address user complaints and reignite market interest.

Despite plans for Vision Pro to enter international markets including China, Japan, Australia, and major European countries by the end of June, a supplier manufacturing components for Vision Pro reduced production by half in May after receiving news from Apple predicting weakened demand in August. An employee of this supplier revealed that Apple has produced a maximum of about 500,000 devices this year and does not expect to increase production by August.

More Affordable Vision Version: Priced at $1,500, Significant Weight Reduction

Media reports indicate that Augmented Reality (AR) is one of Apple's biggest bets. The company plans to eventually replace the iPhone with lightweight AR glasses, and Vision Pro is the first step in attracting consumers and developers to be interested in AR technology. Initially, Apple planned to divide the Vision product line into two models, similar to the standard and Pro versions of the iPhone According to previous reports, Apple is starting to develop a cheaper Vision series product in 2022, with an internal codename of N109. The company aims to make this product as affordable as high-end iPhones, which can retail for up to $1600. The latest news indicates that Apple is targeting a price of around $1500 for the cheaper Vision model, while the Vision Pro starts at $3500.

Furthermore, media reports from last year mentioned some features of this cheaper version by Apple, stating that it will retain a high-end display but with fewer cameras, a simpler headband, and smaller speakers. Supply chain sources revealed that Apple is also trying to make the N109 at least one-third lighter than the Vision Pro, as some users have complained about the Vision Pro's weight of 650 grams (1.43 pounds) being uncomfortable for prolonged wear.

Moreover, reports suggest that while the display of the Vision Pro is one of the most expensive components, Apple hopes the cheaper model can retain the ultra-high-end display of the Vision Pro. Therefore, the company shifted its focus last year to reducing the costs of the first-generation Vision Pro components while also starting the development of an upgraded Vision Pro display.

Citing informed sources, the media reported that Sony has been the sole supplier of Vision Pro displays so far. However, Apple has been collaborating with the Chinese company Seeya Technology, planning to produce cheaper displays next year to replace Sony's displays. Seeya has been striving to meet Apple's standards, although this effort may fail.

Although Apple initially aimed to launch this more affordable product by the end of 2024 when this work began, as of earlier this year, Apple has not yet introduced a prototype of the N109. Apple has been working to find ways to reduce the costs of this version while not sacrificing too many key features, which could mean that the product's release date might be delayed until the end of 2025.

How do analysts view this?

The media suggests that while Apple may resume the development of high-end Vision products in the future, the current pause in developing the next generation of high-end headsets could impact the AR and virtual reality (VR) industries, as these industries see headsets as a touchstone for consumer demand for high-end devices.

For example, Meta Platforms started developing a new high-end headset named La Jolla five months after Apple announced the Vision Pro. Prior to this, Meta canceled plans to produce a more expensive Quest headset after seeing weak sales of the $1500 Quest Pro in January 2023. This information was reported based on disclosures from former Meta employees, although a Meta spokesperson did not respond to requests for comment Industry analysts pointed out that cheaper Vision headsets can make AR/VR technology more popular, expand Apple's market share in the AR/VR field, and also allow Apple to compete with rivals such as Meta/Quest. Potential challenges include maintaining product quality while reducing costs.

How do netizens view this?

Netizens on social media platform X commented:

"Apple's suspension of the development of its next-generation high-end visual headphones highlights a disturbing trend. The company has recently lacked breakthrough innovations. Apple used to be a leader in technological advancement, but now it seems to be falling behind its competitors."

"Wow, so shocking (sarcastic). I knew from the beginning that this wouldn't lead to anything."

"I think this has nothing to do with software. Apple has not given up on the vision of the Pro version, but is improving it to compete with rivals."