It is rumored that Apple will suspend the research and development of the second-generation high-end headset and launch a cheap version of the Vision at the end of next year

Tencent Technology

2024-06-19 00:04Posted on the official account of Beijing Tencent News Technology Channel

Highlights:

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  Apple has suspended the development of the second-generation high-end Vision Pro headset, and the first generation has not sold well.

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  Apple will produce up to 500,000 units of the Vision Pro this year, and sales will not increase significantly until August.

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  The development of the low-cost version of the Vision product began in 2022, and the launch time may be by the end of 2025.

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  The price of the low-cost version of the Vision is about $1,600 (about 11,600 yuan), which is similar to the price of a high-end iPhone.

Tencent Technology News According to foreign media reports, employees of a manufacturer that produces key components for Apple's headset Vision Pro revealed on Tuesday that Apple has suspended research and development of the next generation of high-end Vision Pro headsets. It is reported that before Apple's decision, Wall Street analysts and Apple's supply chain partners had expressed concern about the slowdown in sales of the Vision Pro, which costs up to $3,500.

Despite this, Apple is still planning to launch a Vision product with fewer features but a more affordable price by the end of 2025, the news added. According to Apple's supply chain and former Apple employees who have been involved in the development of the device, Apple originally planned to let the headset Vision adopt the same strategy as the iPhone, launching the standard version and the Pro version.

Apple's suspension of follow-up development of high-end headsets is another manifestation of the company's strategic priorities. The company is ramping up research and development into artificial intelligence capabilities while cutting investment in loss-making projects such as self-driving cars, which were scrapped earlier this year after nearly a decade of development. Augmented reality is one of Apple's current big bets on eventually replacing the iPhone with lightweight smart glasses, and the Vision Pro is the first step in nurturing interest among consumers and developers.

While Apple may restart the development of high-end Vision products in the future, the current pause in the development of next-generation high-end headsets could have a knock-on effect on the entire augmented reality and virtual reality industry. At present, the industry generally regards this headset as a bellwether to measure consumer demand for high-end devices. For example, Meta launched a new high-end headset project codenamed "La Jolla" in November last year, five months after Apple announced that it would launch the Vision Pro. And in January 2023, Meta canceled plans to develop a more expensive Quest headset after observing poor sales of its $1,500 Quest Pro. So far, neither Apple nor Meta spokespeople have commented on the report.

Apple began selling the Vision Pro in the U.S. market in February this year. After its launch, independent reviewers criticized it for its lack of content, discomfort to wear, and limited use cases. Bloggers and columnists have also noted that some users have stopped using the device because of these issues. According to Apple's plan, the Vision Pro will start selling in international markets such as China, Japan, Australia and major European countries by the end of this month. To alleviate user complaints and rekindle interest in the device, Apple also released a new version of the Vision Pro operating system earlier this month.

Even though the Vision Pro is about to be launched in the international market, a supplier that produces modules for the Vision Pro halved production in May, a decision they made after receiving news that Apple predicted that demand would weaken by August. The supplier said it had produced parts for about 460,000 Vision Pros as of April and plans to produce enough parts for another 100,000 headsets between May and August. The data suggests that Apple may have produced up to about 500,000 Vision Pro units this year, and that production is not expected to increase significantly by August.

Apple has been lowering the development priorities for the follow-up to the high-end Vision Pro over the past year, gradually reducing the number of employees assigned to the development of the second-generation product, according to a person who was involved in the development of the Vision Pro until earlier this year. Within Apple, although it did launch an upgrade to the Vision Pro display, the focus has shifted to reducing the cost of components for the first generation, the person said.

Cut costs and reduce weight

It was previously reported that Apple launched the development of a cheap version of the Vision product codenamed "N109" in 2022. Apple aims to position the price of this product at the level of high-end iPhones, which can sell for up to $1,600. At the time of the launch of this work, Apple plans to launch this more affordable product by the end of 2024.

As of the beginning of the year, Apple has not yet confirmed the final prototype of the N109, according to people involved in the development. The company has struggled to reduce costs without sacrificing key features, which could lead to a delay in the product's release until the end of 2025.

According to people familiar with the matter, Apple wants the cheaper version of the Vision product to retain the Vision Pro's ultra-high-end display, which is one of the most expensive components of the Vision Pro. Apple has been working with China's SeeYA Technology and plans to produce cheaper displays next year to replace Sony, the current exclusive supplier of Vision Pro displays. However, SeeYA has struggled to meet Apple's high standards, and this collaborative effort may end in failure. Last year, it was reported that Apple's cheaper version of the Vision would retain the high-end display, but with a reduced number of cameras, a simpler headband, and smaller speakers.

In addition, Apple is also working to make the N109 at least a third lighter than the Vision Pro. Some users have reported that the Vision Pro weighs 1.43 pounds (about 650 grams) and is uncomfortable to wear for long periods of time. (Compilation/Mowgli)

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