Vision Pro slashed production by 60%? Apple doesn't need to panic, Meta Platforms also has hopes of "rising"!
Apple's Vision Pro has been reported to reduce production to 400,000 units next year. But why shouldn't we worry? It's important to note that the high price of $3,499 has already lowered market expectations. Even if they only sell 150,000 units in the first year, the production capacity of 400,000 units is more than enough.
The Battle Between Virtual Reality (VR) and Mixed Reality (MR) Headsets, Is Meta Getting Hopeful Again?
According to two sources close to Apple and LUXSHARE-ICT, Apple plans to reduce the production of its first MR headset, Vision Pro, from the originally expected 1 million units to 400,000 units in 2024.
Although a representative from MR production equipment manufacturer Secote co.ltd stated that they have not received any information about Apple's plan to reduce production, several individuals familiar with the production process mentioned in the report that the significant reduction in target production is mainly due to the complex design and production difficulties of Vision Pro, which has also led to the delay of plans to release a cheaper version in the future.
In response to this, a representative from the investment department of LUXSHARE-ICT has stated that specific details about clients cannot be disclosed due to confidentiality agreements.
However, is a significant production cut really bad news for Apple?
Analysts believe that it may not necessarily be the case, considering that the high price of $3,499 has already lowered market expectations for its sales performance. Wedbush's star technology stock analyst, Dan Ives, previously predicted that Vision Pro would only sell 150,000 units in its first year, so even with a production capacity of 400,000 units, it would be more than sufficient.
On the other hand, for Apple's competitor in the headset market, Meta, this could be a huge piece of good news.
You see, in the eyes of tech enthusiasts, Vision Pro boasts impressive technological capabilities, such as low latency, high resolution, and user-friendly operation, which are considered a "knockout blow" to other headsets. However, now, advanced technology has become a hindrance to production, which can be seen as a "backlash."
As a result, Meta may have more time to build anticipation for the latest version of their headset, Quest 3, which is expected to debut this fall. If they can take advantage of Apple's production cut and their own headset's relatively affordable price of $499, Meta still has the potential to create a VR frenzy.
