Apple Cuts Marketing Budget for Vision Pro Following Weak Sales
Apple has significantly reduced its online marketing expenditure for the Vision Pro headset by 95% across several key markets, including the US and UK. This move comes as the company grapples with disappointing sales figures for both the original Vision Pro and its upgraded M5 version. Despite the chipset enhancement, the headset has struggled to gain traction, largely due to its hefty price tag and bulky design.
Details on Sales and Production
The Vision Pro, priced at $3,499, reportedly shipped fewer than 500,000 units since its launch, with production reportedly halted by Apple’s contract manufacturer Luxshare in China after delivering around 390,000 units in 2024. Market research firm IDC predicts that even during peak season at the end of 2025, shipments will remain low, estimated at just 45,000 units. The headset is currently available in only 13 countries, with no plans for wider expansion, likely reflecting Apple’s cautious approach given the limited consumer demand.
Challenges Faced by the Vision Pro
Apple CEO Tim Cook has acknowledged that the Vision Pro is not intended for mass-market adoption, a sentiment echoed by Bloomberg’s Mark Gurman, who attributes the poor sales to the device’s high cost and increased weight. The headset’s niche appeal and lack of compelling use cases have hindered its popularity. Furthermore, delaying the rollout of key features does not appear to be a viable strategy to boost growth, according to industry insiders.
Future Prospects and Industry Context
There were reports of Apple developing a more affordable Vision Pro model, dubbed Vision Air, with a potential launch in 2027. However, these plans may be in jeopardy after Samsung reportedly ceased development of the necessary displays for the device. Despite the Vision Pro’s struggles, Apple continues to perform strongly in other areas, with the iPhone 17 series achieving robust sales that help offset the headset’s underwhelming market performance.
As Apple reassesses its approach to the Vision Pro, the coming years will be critical in determining whether the company can refine its mixed reality offerings to better meet consumer expectations.
Source: Financial Times