# Apple Vision Pro: Adjustments in Supply Chain and Market Trends
Apple Inc. is implementing notable changes to its supply chain production for the Apple Vision Pro, as highlighted by *The Information*. This tactical decision is influenced by the company’s existing inventory levels and forecasted demand for the groundbreaking headset.
## Current Production Overview
As per the report, Apple has amassed ample inventory to satisfy demand for the near future. Suppliers have produced parts for around 600,000 Vision Pro headsets, consistent with initial shipping estimates for 2024. Nevertheless, Apple has informed its assembly partner, Luxshare, that it might need to curtail manufacturing operations for the Vision Pro by November. Presently, Luxshare is assembling about 1,000 units daily, down from a high of 2,000 units per day. Since production commenced last year, the estimated total number of assembled headsets ranges between 500,000 and 600,000.
A worker at one of the manufacturing facilities pointed out that the production of Vision Pro components was halted in May due to Apple’s lowered forecasts, leading to a warehouse filled with tens of thousands of undistributed parts. This scenario highlights the difficulties Apple encounters in harmonizing production with market demand.
## Future Strategies and Product Innovation
Alongside the reduction in production, Apple is reportedly redirecting its efforts toward creating a more budget-friendly version of the Vision Pro headset, with a launch anticipated as soon as next year. Industry analyst Ming-Chi Kuo has indicated that Apple aims to introduce a spec upgrade for the Vision Pro in 2025, potentially featuring an upgrade to the M5 chip and enhanced support for Apple Intelligence.
Apple CEO Tim Cook recently discussed the Vision Pro’s market performance in an interview with *The Wall Street Journal*. He recognized the headset’s current market stance, saying, “At $3,500, it’s not a mass-market product… Right now, it’s an early-adopter product.” Cook underscored the significance of creating an ecosystem around the Vision Pro, suggesting that although sales may not meet early expectations, foundational efforts for future success are actively being pursued.
## Market Performance and Sales Projections
Sales data for the Vision Pro have been modest, with estimates indicating that Apple moved approximately 370,000 headsets during the first three quarters of the year, with forecasts of merely 50,000 additional units by the end of the year. These figures are in line with previous estimates that proposed production would be constrained to around 400,000 to 500,000 units in the inaugural year due to manufacturing challenges, particularly relating to the headset’s advanced 4K micro-OLED displays.
While *The Information* reported a significant drop in production, it’s important to view this within the wider context of Apple’s sales predictions. If Apple expected to sell 400,000 to 500,000 units and has already manufactured 600,000, a decrease in production seems to be a sensible move, especially with an upgraded version approaching.
## Conclusion
Apple’s modifications to the Vision Pro’s production signify a tactical reaction to the prevailing market situation and inventory statuses. As the company navigates the challenges of introducing a cutting-edge product within a specific market, the emphasis on developing a more accessible version and enhancing existing products showcases a dedication to long-term advancement in the augmented reality domain. While initial sales may not have reached anticipated levels, the groundwork established by Apple could facilitate wider adoption of the Vision Pro and its future iterations.
