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The Vision Pro, Apple’s ambitious mixed reality headset, has recently expanded its availability to nine countries outside the United States. However, initial sales figures indicate a significant decline in consumer interest. Despite the global launch, the Vision Pro struggles to maintain momentum in the competitive tech market. Analysts suggest that high costs and limited exclusive content are major factors contributing to the downturn. This post will explore the current sales slump, the challenges facing Vision Pro, and Apple’s strategic plans to introduce a more affordable model to reignite consumer enthusiasm.
Vision Pro Sales Slump
The Vision Pro, despite its availability in nine countries outside the United States, is experiencing a significant drop in sales. According to IDC analysts cited by Bloomberg, the initial excitement for the mixed reality headset has waned considerably. IDC’s estimates show that Vision Pro sales have not exceeded 100,000 units per quarter. Worse yet, analysts anticipate a 75% drop in sales in the U.S., with worldwide sales projected to reach only around 500,000 units this year, half of which are expected to be in the U.S.
High Development Cost
“Despite the hype, the Vision Pro remains essentially a high-priced development kit, and demand will thus be limited,” says Jitesh Ubrani, an analyst at IDC. This sentiment aligns with Bloomberg’s report from April, which noted a decline in Vision Pro sales in the U.S., attributed to its elitist price ($3,499, or €3,999 in France), less-than-optimal comfort for prolonged use, and a lack of exclusive content.
Previously, analyst Ming-Chi Kuo mentioned that Apple had reduced its production volumes from an estimated 700,000-800,000 units to 400,000-450,000 units. IDC suggests that most Vision Pro buyers are businesses looking to evaluate it as a tool or develop applications.
Apple’s Plans for an Affordable Model
This niche market is unlikely to expand until Apple offers a more affordable model, which is reportedly in the works. Apple has allegedly halted the development of its next high-end Vision Pro model in favor of a cheaper version expected by late 2025. This new model’s price is speculated to be around $1,500, equivalent to a high-end iPhone. Although this would represent a significant price reduction, IDC believes it still might not be low enough to attract a broad audience, suggesting that prices need to drop below $1,000 to see substantial consumer adoption.
One strategy Apple is exploring to reduce the cost and weight of its headset is to connect it to a Mac or an iPhone. By leveraging the processing power of these devices, Apple can streamline the Vision Pro’s design, making it more accessible and user-friendly. This approach not only lowers production costs but also enhances the user experience, potentially broadening the headset’s appeal and market reach.
Conclusion
The Vision Pro‘s initial sales performance indicates that despite the innovation and potential of mixed reality technology, high costs and limited exclusive content are significant barriers to widespread adoption. IDC’s analysis highlights the need for a more affordable model to capture a broader market. Apple’s decision to shift focus towards a less expensive version of the Vision Pro by 2025 is a strategic move that could rejuvenate interest and drive sales. One strategy Apple is exploring to reduce the cost and weight of its headset is to connect it to a Mac or an iPhone. As the market evolves, the key to success will be balancing advanced technology with accessibility, ensuring that more users can experience the benefits of mixed reality.