Apple has reportedly told at least one supplier that it has suspended work on the next iteration of its Apple Vision Pro headset, the latest sign of weaker-than-expected demand for the company’s big new product half a year after launch.
The Information reported on Tuesday that Apple will continue working on a more affordable Vision product with fewer features, which is expected sometime next year. The Information’s story cited an anonymous employee at “a manufacturer that makes key components for the Vision Pro.”
Apple didn’t immediately respond to a request for comment.
Read more: Meta Quest 3 vs. Apple Vision Pro: Which One Is Better, and for What?
For many Apple watchers, the Apple Vision Pro’s apparent struggles aren’t a surprise. When the device first landed on store shelves in February, reviewers praised the device as potentially the next big thing. But its $3,499 price tag made it incredibly expensive, particularly when matched against devices like Meta’s $500 Quest 3 headset.
“The Vision Pro, which feels like an iOS device in mixed-reality headset form, seems like the beginning of an entirely new proposition,” CNET reviewer Scott Stein wrote shortly after Apple’s launch. Meta’s device offers many of the same features, he added, though with a less refined design. “The Quest 3 is still the best affordable headset to play with and try mixed reality,” Stein said.
Apple hasn’t reported sales data for the device, though one financial analyst reportedly said in April that the company cut its shipment forecasts by up to 50% as demand had “fallen sharply.”
Despite industry concerns, Apple is still early in its launch plans for the Vision Pro. The company last week announced plans to expand past its US-exclusive launch this summer, to countries including China, Japan, Australia, Canada and France. And it’s adding new features with a free software update this fall, including a 3D photo converter and easier-to-use hand gestures.
Apple will also use the fall to launch its next-generation artificial intelligence service, which it plans to call Apple Intelligence. The company says the features will work on many modern Mac laptops and desktops, as well as some iPads and last year’s iPhone 15 Pro models, which start at $999. The company says its new AI is designed to help in daily life, summarizing text message conversations, helping write emails and connecting data between apps.