Virtual reality (VR) and mixed reality (XR) headsets appear to be finding it difficult to make an impact on the market, as two tech giants, Apple and Meta, have decided to pause production.
According to a recent report from The Information, Apple has reportedly cut production of its Vision Pro mixed reality headset following poor initial sales. Just last week, CEO Tim Cook acknowledged that the $3,500 device was targeted at early adopters and was not designed to appeal to the mass market.
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The production cuts are in response to lower-than-expected demand, with inventory levels currently said to be sufficient to meet orders. Sales forecasts earlier this year suggested Apple could sell fewer than 500,000 units by the end of 2024.
As cited by The Information, industry insiders speculated that Apple could release a more affordable version of the Vision Pro in 2025, perhaps costing closer to $2,000. are. This model has a slower processor and less premium materials, allowing Apple to broaden its appeal without competing in the ultra-luxury market.
Meta Scraps Apple-Rival Project
Meanwhile, Meta has also changed its mixed reality plans. Initial reports indicated that the social media giant was developing a high-end headset to rival Apple’s Vision Pro, scheduled for release in 2027. However, according to The Information, Meta has now completely abandoned the project. Citing internal sources, the report states that during a recent review meeting, Meta employees were instructed to halt development of the premium headset.
Meta CTO Andrew Bosworth addressed the decision, saying in a post on Threads that Meta frequently works on various prototypes, many of which have never made it to production. “We have many prototypes in development all the time, but we don’t make them all into products. We move forward with some, but pass on others. Decisions like this happen all the time, and the story “This decision is based on small talk about one individual. This decision will never capture the true picture,” Bosworth said.
