It is reported that $Apple (AAPL.US)$The company's strategy in the high-end head-mounted device market has undergone major adjustments as the development of Vision Pro is suspended.

On Tuesday, June 18, according to media reports, employees of a supplier that manufactures key components for Vision Pro revealed that Apple has notified at least one supplier to suspend the development work of the second-generation high-end Vision head-mounted device. A former Apple employee also revealed that Apple has gradually lowered the development priority of Vision Pro and reduced the staff of the project over the past year. But Apple has not officially responded to the news.

This decision was made after Vision Pro recently expanded internationally and previewed the VisionOS 2 function. Apple made this decision because the sales of its $3,500 Vision Pro device began to slow down, and it was re-evaluating its product line and development priorities. Instead, Apple is following in the footsteps of Meta, focusing on developing a less featured and more affordable version of Vision, which is planned to be released by the end of 2025.

After the news was announced, Apple's stock price weakened and eventually fell by 1.1%.

The market feedback on Vision Pro is not good. After launching in the United States in February, independent reviewers criticized Vision Pro for its lack of content, poor comfort, and limited usage scenarios, and bloggers and columnists pointed out that some users stopped using the device because of this. In response, Apple announced earlier this month the release of the new Vision Pro operating system to address user complaints and reignite market interest.

Although Vision Pro is planned to enter the international market, including major countries such as China, Japan, Australia, and Europe at the end of June, a supplier that manufactures parts for Vision Pro has cut production in half after receiving news that Apple's demand is expected to weaken in August. An employee of the supplier revealed that Apple produced no more than 500,000 devices this year and is not expected to increase production by August.

A more affordable version of Vision: for sale at $1500 and with a significantly reduced weight.

According to the media, augmented reality (AR) is one of Apple's biggest bets. The company plans to eventually replace the iPhone with lightweight AR glasses, and Vision Pro is the first step in attracting consumer and developer interest in AR technology. Initially, Apple planned to divide the Vision product line into two models, similar to the standard and Pro versions of the iPhone.

According to previous media reports, Apple started developing a cheaper Vision series product in 2022, code-named N109. The company's goal is to make this product as affordable as high-end iPhones, which retail for up to $1,600. The latest news shows that Apple's target price for the cheaper Vision model is around $1,500, compared to the starting price of $3,500 for Vision Pro.

In addition, some media reported on the features of this cheaper version of Apple last year, stating that it will retain high-end displays but have fewer cameras, simpler headbands, and smaller speakers. According to people in Apple's supply chain, Apple is also trying to make N109 at least one-third lighter than Vision Pro, as some users complained that Vision Pro weighs as much as 650 grams (1.43 pounds) and is uncomfortable to wear for long periods of time.

In addition, although the Vision Pro screen is one of the most expensive components of the device, Apple hopes that the cheaper version can retain the ultra-high-end display screen of Vision Pro. Therefore, the company shifted its focus to reducing the cost of the first-generation Vision Pro components last year while also starting research and development work on the upgraded version of Vision Pro display screens.

According to sources familiar with the matter, Sony has been the only supplier of Vision Pro display screens to date. But Apple has been working with Chinese company Seeya Technology to produce cheaper displays for next year to replace Sony's displays. Seeya has been trying to meet Apple's standards so far, although this effort may fail.

Although Apple's initial goal was to launch this cheaper product by the end of 2024 when it first started work, as of earlier this year, Apple has not yet released a prototype of N109. Apple has been working to find ways to reduce the cost of this version while not losing too many key features, which means that the release date of this product may be delayed until the end of 2025.

What do analysts think?

Although Apple may resume the development of its high-end Vision products in the future, the suspension of the development of the next-generation high-end headsets may affect the AR and virtual reality (VR) industries, as these industries regard headsets as a touchstone of consumer demand for high-end devices.

For example, Meta Platforms launched the development of a new high-end headset named La Jolla five months after Apple announced Vision Pro. Prior to this, Meta cancelled the plan to produce more expensive Quest headsets after the $1,500 Quest Pro sales were weak in January 2023. This news was reported by the media based on information from former employees of Meta, but a Meta spokesman did not respond to a request for comment.

Some industry analysts pointed out that a cheaper Vision headset can make AR/VR technology more popular, expand Apple's market share in the AR/VR field, and allow Apple to compete with rivals such as Meta/Quest. Potential challenges include lowering costs while maintaining product quality.

What do netizens think?

Netizens expressed on the social media platform X:

Apple's suspension of the development of its next-generation high-end visual and aural headphones highlights a worrying trend. The company has recently lacked breakthrough innovations. Apple used to be a leader in technological advancement, but now seems to be lagging behind its competitors.

Wow, so shocking (sarcastic). I said from the beginning that this wouldn't result in anything.

I don't think this has anything to do with software. Apple hasn't given up on the vision of a Pro version, but is making improvements to compete with its rivals.

Editor/Somer