Apple Inc. AAPL is reportedly struggling to develop a cheaper version of its first-generation mixed-reality headset, Vision Pro.
What Happened: In his latest weekly “Power On” newsletter, Bloomberg columnist Mark Gurman said that the high price tag and lack of mainstream appeal have led to a re-evaluation of Vision Pro’s roadmap.
Apple’s Vision Products Group has decided to focus on making the headset more accessible to the mainstream market. This includes plans to introduce a range of devices with varying price points, similar to Apple’s approach with other product categories.
However, developing a cheaper version of the headset, codenamed N107, has proven challenging. “The problem: Apple is struggling to get the cost down while retaining critical features. It's dealing with some difficult trade-offs,” said Gurman.
The tech giant might remove the EyeSight display — a feature that displays the user's eyes externally—and lower the specifications of the internal virtual reality screens. Additionally, Apple could opt for a less powerful chip and reduce the quality of the augmented reality passthrough visuals, which provide real-world views outside the device, Gurman noted.
The Cupertino, California-based tech giant is also reportedly working on a second-generation Vision Pro, although its release has been pushed back to late 2026.
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Why It Matters: Vision Pro’s struggle to gain traction in the market has been a recurring theme. In April earlier this year, it was reported that Apple cut its Vision Pro shipment forecasts by nearly half due to a significant drop in demand.
Despite these challenges, Apple announced the first major update to visionOS at the WWDC 2024, bringing usability improvements. It also revealed that there are over 2,000 apps specifically created for Vision Pro. This was part of the company’s efforts to boost the product’s appeal.
Previously, renowned analyst Ming-Chi Kuo noted that many users were buying the Vision Pro but not using it extensively. He suggested that simply creating a cheaper version of the headset would not address the issue, indicating that the product’s problems may run deeper than just its price point.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Apple
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