In a significant strategic shift, Apple has reportedly made deep cuts to the production of its high-end Vision Pro headset following disappointing sales, marking a rare commercial setback for the tech giant.
A Vision of the Future Falters
Launched in 2023 with ambitions to define a new era of "spatial computing," the Vision Pro headset has struggled to find a broad audience. According to figures first reported by the Financial Times and from market intelligence group Sensor Tower, Apple reduced its marketing spend for the device by more than 95% last year. The company's Chinese manufacturer, Luxshare, is said to have halted production at the start of 2025.
While Apple continues to sell iPhones and iPads in their millions, analysts point to the Vision Pro's steep £3,199 price tag as a major barrier. The market research firm International Data Corporation (IDC) estimates that only 45,000 units were sold in the final quarter of 2024. Apple has not expanded direct sales beyond an initial 13 countries and has never released official sales figures for the headset.
Challenges and Market Realities
The device, which allows users to interact with apps using eye and hand gestures, faced criticism from reviewers for being heavy, uncomfortable, and offering a limited library of dedicated applications. Morgan Stanley analyst Erik Woodring cited "cost, form factor and the lack of VisionOS native apps" as the core reasons for its failure to sell broadly.
This situation echoes the commercial failure of Google Glass a decade ago and contrasts sharply with the success of Meta's Quest headsets. Although less advanced, Meta's devices cost around £419 and have captured an estimated 80% of the market. In a parallel move, Meta confirmed last month it is shifting some investment from its metaverse vision towards AI glasses and wearables.
The Pivot to Artificial Intelligence
The apparent cooling on virtual reality coincides with a industry-wide refocusing on artificial intelligence. Reports in the tech press indicate Apple has paused plans for a next-generation Vision Pro in favour of developing wearable AI devices. The company is still expected to release a cheaper version of the Vision Pro later this year, but the strategic emphasis has clearly changed.
Counterpoint Research has predicted a 14% reduction in annual sales across the entire virtual reality headset market. Apple has declined to comment on reports of production cuts. If confirmed, this move represents a notable recalibration for a company that hoped the Vision Pro would achieve the iconic status of the iPhone, instead finding its appeal confined to a niche audience.
