Apple cuts back Vision Pro headset production by 95%, says report

Reports suggest the company is working on a more affordable version of the Vision Pro, though its broader focus appears to be shifting toward artificial intelligence-driven wearables rather than full-scale virtual reality. (Image Source: Apple)

Apple has reportedly scaled back production of its Vision Pro headset after demand failed to meet expectations, dealing an early setback to the company’s ambitions in so-called “spatial computing”.

According to industry estimates, sales of the high-end mixed-reality device have been slower than Apple anticipated since its launch, prompting the company to quietly reduce output. Marketing support for the Vision Pro also saw a significant decline last year, with data from market intelligence firm Sensor Tower indicating that Apple cut promotional spending by more than 95 per cent.

This slowdown contrasts sharply with Apple’s core hardware business, which continues to ship millions of iPhones, iPads, and Macs each quarter. In comparison, the Vision Pro, priced from Rs 3,15,563 ($3,499), has struggled to gain traction. Although Apple does not disclose sales figures for the headset, the International Data Corporation (IDC) estimates that only around 45,000 units were sold in the final quarter of last year.

IDC also reported that Apple’s manufacturing partner in China, Luxshare, halted production of the device at the beginning of 2025. At the same time, Apple has kept Vision Pro availability limited, selling it in just 13 markets so far—something analysts say has further constrained adoption.

There may also be broader challenges facing the virtual and augmented reality industries. Due to declining consumer interest and slower-than-expected sales, research predicts a 14 per cent year-over-year decline in global shipments of virtual reality headsets. Given these challenges, the Vision Pro has been compared to past wearable technology attempts that did not succeed, such as Google Glass in the early 2010s. While the headset is impressive in its technical capabilities, critics argue that Apple misjudged consumer readiness and willingness to pay for such a product.

Despite the slow start and pick of the product, Apple will probably not abandon the category altogether. Reports suggest the company is working on a more affordable version of the Vision Pro, though its broader focus appears to be shifting toward artificial intelligence-driven wearables rather than full-scale virtual reality. Tech industry chatter indicates Apple has paused development of a next-generation VR headset to prioritise AI-focused hardware.

Rivals are making similar adjustments. Meta, which dominates the VR market with around 80 per cent share thanks to its lower-priced Quest headsets, has acknowledged it is redirecting resources away from its metaverse ambitions. The company recently confirmed it is reallocating investment toward AI glasses and other wearable devices.

Reports of Apple cutting down production or reconsidering its virtual reality roadmap have not been addressed by the company. If accurate, this pullback would be a rare mistake for a company that is typically known for developing lucrative new product categories.

Even devoted early adopters have admitted that the Vision Pro can feel isolated and serves a limited audience. The limited app ecosystem has further diminished its appeal, particularly when compared to the explosive growth seen on the iPhone shortly after its launch. While Apple claims approximately 3,000 apps are available for the headset, this figure pales in comparison to the extensive app libraries on its more established devices.

As one analyst put it, the combination of high cost, bulky design, and a shortage of compelling native software has made it difficult for the Vision Pro to move beyond a niche product, at least for now.