The Apple Vision Pro’s official release was postponed to early 2024 due to a series of challenges. Despite starting the year anew, the latest shipment estimates indicate that the mixed-reality headset may not be a major success for Apple in terms of commercial sales. Nevertheless, as a remarkable technological achievement, it is likely to have had a significant impact on people even before reaching the market.
The decline in shipments from one million units to 150,000 is indeed worrisome. However, considering the $3,499 price tag of the Apple Vision Pro, it is not unexpected that the device will be shipped in lower volumes. On Twitter, Ayesha Tariq mentioned that an insider informed the ‘Maeli’ that the initial shipment target was one million units, which later decreased to 300,000 units and ultimately to 150,000 units.
Despite its price tag of 150,000, the Apple Vision Pro is expected to generate $0.525 billion in revenue for the company, which, although a substantial amount, falls short of the billions generated by Apple’s other products. Fortunately, Ben Bajarin, CEO and Principal Analyst of Creative Strategies, mentioned in a Twitter thread that shipment estimates for the Apple Vision Pro are as high as 500,000 units, with the potential to increase if demand rises in the coming year.
The company clearly needs to introduce a considerably more affordable alternative to attract a larger consumer base. However, it seems that a more budget-friendly AR headset won’t be available until 2025 at the earliest. Interestingly, before its official release, Apple plans to charge customers more than the initial price of $3,499. Additionally, if a wearer requires prescription lenses, they would need to pay up to $600 for this accessory. Moreover, those with larger head sizes than the standard band shipped with the Apple Vision Pro may also have to pay an additional amount.
Another potential revenue source lies in the sale of separate batteries since the one included with the headset has a small capacity of 6,500mAh, resulting in a two-hour battery life. Although we don’t anticipate the first model of the Apple Vision Pro to be a major cash cow for the company, it could still generate additional income through its accessories. However, the subsequent version of the headset, with a more competitive price tag, has the potential to attract a broader consumer base.
Apple cuts Vision Pro sales target to 150K units vs previously discussed 1M units
An industry insider tells the Maeil that the initially discussed volume was 1M units, which was then reduced to 300K before being slashed to 150K this time.$AAPL
— Ayesha Tariq, CFA (@AyeshaTariq) June 8, 2023