Apple In Trouble? Tim Cook Reportedly Cuts Vision Pro Shipment Forecasts By Up To 50%, Analyst Says Demand Has 'Fallen Sharply'

Apple Inc. (NASDAQ:AAPL) has cut its Vision Pro shipments by nearly half due to a significant drop in demand, according to a new report.

What Happened: The Cupertino-based tech giant has revised its Vision Pro shipment estimates to 400,000-450,000 units for 2024, down from the initial 700,000-800,000 units. The changes have forced Apple to reconsider its overall headset strategy, said analyst Ming-Chi Kuo.

He suggests that the demand for Vision Pro has dropped significantly in the United States, leading Apple to adopt a cautious approach to its international launch. This has prompted Apple to re-evaluate its headset business strategy.

"Apple cut orders before launching Vision Pro in non-US markets, which means that demand in the US market has fallen sharply beyond expectations, making Apple take a conservative view of demand in non-US markets."

Kuo also hinted that Apple might not release a second-generation Vision Pro in 2025, as previously speculated.

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Apple had previously planned to produce approximately 400,000 Vision Pro headsets in 2024. It is possible that Apple increased this target before the Vision Pro’s release in February, only to now lower it again.

Apple is expected to expand the Vision Pro's availability at the upcoming Worldwide Developers Conference (WWDC) in June.

Why It Matters: The Vision Pro, which launched in February, has been a topic of debate. Privacy expert Albert Fox Cahn criticized it as a “buggy beta test of a product launch,” raising concerns about increased surveillance.

Despite this, the headset received praise from industry leaders, with OpenAI co-founder Sam Altman calling it the second most impressive tech since the iPhone.

Price Action: Apple's shares were up 0.23% in premarket trading on Wednesday after closing at $166.82 on Tuesday, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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