BeTechIT tech news has spotted a striking difference in today’s digital world.
The tech industry shows remarkable 42% yearly growth since 2011, yet Apple’s latest state-of-the-art product faces unexpected challenges.
The global tech sector makes most important advances in AI, cybersecurity, and consumer electronics. This creates a competitive marketplace for groundbreaking products.
Our position as a leading Canadian tech news source gives us a unique perspective on these developments. The tech community now focuses heavily on easy-to-use interfaces and uninterrupted experiences that determine product success.
The original excitement about the Apple Vision Pro seemed promising, but our latest startup news shows surprising sales numbers.
Let’s get into the reasons behind this major market change and what it means for the future of augmented reality devices.
Apple Reports Massive Vision Pro Sales Decline: BeTechit Tech
Counterpoint Research’s latest data shows Apple Vision Pro sales plummeted 80% in the second quarter of 2024 compared to its launch quarter.
The broader VR and AR headset market isn’t doing much better – IDC reports shipments dropped a substantial 67.4% year-over-year in Q1 2024.
The buzz around Vision Pro’s launch has faded quickly. Apple managed to sell about 200,000 units during its U.S. debut, but had to scale back its first-year sales targets.
The company’s original goal of 700,000-800,000 units was cut down to 400,000-450,000 units. The Vision Pro’s App Store ecosystem shows troubling signs. Appfigures analytics reveals the platform has just 1,770 apps.
New app development has slowed to a crawl – only 10 new apps appeared in September, a stark contrast to the hundreds added in the first two months after launch.
The decline stems from several key issues. The device’s steep price tag of USD 3,499 makes it hard for most consumers to justify the purchase.
Big names like YouTube and Netflix haven’t created apps for the platform. Many early buyers returned their devices within Apple’s two-week window.
Market competition adds another layer of difficulty. While Apple grabbed 17% of unit sales in Q1 2024 with 90,000 units, Meta rules the space with 74% market share in Q2 2024. Meta’s Quest lineup succeeds because it offers similar features at much lower prices.
Apple seems to have a plan to address these challenges. Reports suggest they’re working on a cheaper Vision Pro model for 2025, priced around USD 2,000.
The company is also hiring ‘Briefing Experience Specialists’ in markets of all sizes, including China, Japan, and Australia, which suggests global expansion plans are in motion.
The enterprise market offers some hope. Companies like SAP, Microsoft, and Porsche have built specialized Vision Pro applications, which shows growing interest from businesses.
All the same, IDC expects only 349,000 Vision Pro units will reach commercial buyers this year – that’s less than 20% of total VR/AR headset sales.
What Causes Early Adopters to Return Vision Pro?
Apple Vision Pro users are returning their devices due to comfort problems and limited features. Data from retail stores shows return rates ranging between average and above average.
Users complain about physical discomfort the most. They report headaches, eye strain, and motion sickness after using the device.
The device’s weight sits heavily toward the front and makes users tired quickly. Light leaks through the nose area because of seal problems, which ruins the viewing experience.
The device doesn’t improve work efficiency compared to regular external monitors. Engineers get headaches from focusing problems, and they find coding on the device unconvincing. Switching between windows becomes awkward and disrupts professional work.
Several technical problems push users to return their devices. The displays show too much glare and have a narrow field of view.
About 20-30% of returns happen because users can’t set up their devices properly. Battery life creates another headache – users must turn off the device to change batteries since hot-swapping doesn’t work.
The Vision Pro store has only 1,770 apps, and just 34% are built specifically for the platform. This lack of specialized apps reduces the device’s usefulness. YouTube and Netflix have decided not to develop Vision Pro apps.
Social interactions suffer too. Users feel cut off from family and friends while wearing the device. The device needs a precise fit that makes sharing difficult and limits group experiences. Many users think the features and available content don’t justify spending USD 3,499.
How Supply Chain Issues Impact Vision Pro Production: BeTechit Tech
Apple had to substantially adjust its Vision Pro production targets due to manufacturing complexities.
Luxshare, their only assembler, has reduced daily production from 2,000 to about 1,000 units. The company plans to make fewer than 400,000 units in 2024.
The biggest problem comes from the device’s complex design, especially with micro-OLED displays. Apple struggles to get defect-free micro-OLED screens. Sony and TSMC supply these displays, which are the costliest components.
Supply chain reports show that Apple asked Chinese suppliers for parts to make just 130,000 to 150,000 units in the first year. This number is much lower than their original sales target of 1 million units.
This slowdown has affected the entire supply chain. Component manufacturers stopped production by May 2024. Warehouses now hold tens of thousands of unused parts. Luxshare has built between 500,000 to 600,000 headsets. Apple believes this inventory will meet customer needs through 2025.
Manufacturing hurdles go beyond component problems. The Vision Pro’s intricate design requires precise optical integration that takes more labor to build.
The device must meet specific standards for weight, brightness, display quality, and field of view. Currently, its viewing angle is limited to 90 degrees compared to human vision’s natural 190-degree horizontal range.
Apple told Luxshare they might need to stop manufacturing by November. This news hit Luxshare hard since they planned to boost production capacity to 18 million units yearly.
Both companies are now expanding their production into Southeast Asia, mainly Thailand, to make their supply chain more flexible.
Apple keeps working on a more affordable Vision Pro version. Production lines can quickly restart or switch to this new model with minimal changes.
Lens Technology and other major partners are expanding their facilities to support this more available model’s development.
Conclusion: BeTechit Tech
Recent analysis shows Apple’s mixed-reality headset faces tough market realities.
Of course, an 80% drop in sales since the launch points to market challenges that go beyond the original adoption hurdles.
Vision Pro’s mass-market success faces the most important barriers from high return rates, user comfort problems, and a limited app ecosystem.
Apple had to cut production targets due to manufacturing complexities, while component availability suffers from supply chain issues. The company’s yearly production target now stands at 400,000 units, down from its original goal of 1 million units.
Vision Pro’s premium pricing strategy doesn’t work well in a market where Meta’s Quest lineup provides similar features at better prices. All the same, Apple’s affordable model planned for 2025 might solve these market positioning challenges.
The mixed-reality market is going through a significant learning phase. We expect Apple to make major changes to its pricing strategy and user experience.
These changes will shape consumer BeTechit tech and AR/VR technology’s future, but success depends on fixing the current limits in comfort, functionality, and price.
