Apple has reportedly made significant cuts to the production of its premium Vision Pro headset, following disappointing sales of the device it once touted as the future of computing.
A Strategic Retreat from Virtual Reality
According to figures from market intelligence group Sensor Tower, first reported by the Financial Times, Apple reduced its marketing spend on the Vision Pro by more than 95% last year. This pullback comes as the tech giant, which sells iPhones and iPads in the millions, grapples with a lukewarm reception for its foray into high-end virtual reality.
The Vision Pro, which launched in 2023 with a starting price of at least £3,199 ($3,499), has failed to capture a mass market. While Apple has not released official sales figures, the International Data Corporation (IDC) estimates it sold only 45,000 units in the final quarter of last year. Production at Apple's Chinese manufacturer, Luxshare, is said to have halted at the start of 2025.
High Price and Niche Appeal Hinder Adoption
The device's commercial challenges are multifaceted. Reviewers and consumers alike have cited several key issues:
- The exorbitant cost, which is nearly eight times the price of Meta's market-leading Quest headsets.
- Criticisms that the headset is heavy and uncomfortable for extended wear.
- A limited library of native apps for its VisionOS platform, with only around 3,000 available.
- The socially isolating experience of using the device, which has drawn comparisons to the failed Google Glass experiment.
Morgan Stanley analyst Erik Woodring summarised the problem, stating the "cost, form factor and the lack of VisionOS native apps are the reasons why the Vision Pro never sold broadly."
Industry Pivot Towards AI and Wearables
The apparent scaling back of the Vision Pro represents a broader shift in the tech industry's focus. Reports indicate Apple has paused its next virtual reality iteration in favour of developing AI-enabled wearable devices. This mirrors moves by competitors; Meta confirmed last month it was "shifting some of our investments from metaverse towards AI glasses and other wearables.">
Despite this strategic retreat, Apple is still expected to release a cheaper version of the Vision Pro later this year. However, the emphasis for the future now clearly lies with artificial intelligence rather than the immersive "spatial computing" world CEO Tim Cook once championed.
If confirmed, the production cuts mark a rare commercial misstep for Apple, a company more accustomed to defining product categories than retreating from them. The episode underscores the significant hurdles—from price to practicality—that remain for high-end virtual reality to achieve mainstream adoption.
