According to sources familiar with the manufacturing process, the iPhone manufacturer is scaling back production of its first-ever mixed-reality headset to less than 400,000 units by 2024, as reported by The Financial Times.
Two Chinese suppliers contracted to provide components for the Vision Pro have revealed that Apple has only requested enough for 130,000 to 150,000 units in the first year. This indicates a considerable cut in production compared to Apple’s initial sales goal of 1 million units.
The main challenge faced by Apple is the production of the screens used in the device. These screens consist of two micro-OLED displays, one for each eye, along with a curved “lenticular” lens that faces outward. The displays offer a higher resolution than anything currently available, while the outward lens allows the wearer to see their surroundings.
The micro-OLED displays used in the prototypes showcased in the June demonstration were provided by Sony and chipmaker TSMC, according to insiders. However, Apple has expressed dissatisfaction with the productivity of its suppliers, particularly regarding the yield of defect-free micro-OLEDs.
Sony has been cautious about expanding its production of mixed-reality headsets, which has contributed to the reduction in Apple’s production forecast. Luxshare, the assembler, has also expressed disappointment as it had been preparing to increase its capacity to produce almost 18 million units per year.
Apple is also working on the next iterations of the mixed-reality headset, including a budget-friendly option. However, these plans have been delayed for now. The company had intended to partner with Samsung and LG for the second-generation headset, aiming to lower costs by using alternative technology like mini-LED. Nevertheless, sources indicate that even the non-Pro models of the headset will continue to use micro-OLED, despite suppliers struggling to meet Apple’s requirements.
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