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Apple Inc. has significantly reduced production targets for its Vision Pro mixed reality headset, according to industry sources familiar with manufacturing operations. The California-based technology company is confronting substantial hurdles in designing and producing the sophisticated components required for its ambitious spatial computing device.

The production cutback stems from multiple manufacturing complexities, particularly with the headset’s ultra-high-resolution micro-OLED displays. These cutting-edge displays, which constitute the most expensive component of the device, have presented Apple and its suppliers with unprecedented engineering challenges. The manufacturing process has proven considerably more difficult than initially projected, resulting in constrained output capabilities.

Additionally, production issues extend to the device’s complex structural design. The Vision Pro’s sleek aluminum alloy frame requires extremely precise manufacturing specifications that have been difficult to maintain at scale. This has created bottlenecks in the assembly process that have further limited production capacity.

Supply chain analysts indicate that the production challenges may affect Apple’s broader rollout strategy for the Vision Pro line. The company had previously planned to introduce more affordable versions of the headset, but these plans may now face delays as Apple works to resolve the manufacturing constraints.

The production scaling comes amid growing market skepticism about consumer appetite for premium mixed reality devices. With a projected price point exceeding $3,000, the Vision Pro targets a niche market of professionals and early adopters rather than mainstream consumers. Industry watchers suggest that the production issues might provide Apple with additional time to develop the ecosystem of applications and content necessary to justify the device’s premium positioning.

Apple maintains its official launch window of early 2024 for the Vision Pro, though the production constraints suggest availability may be extremely limited initially. The company continues to work closely with manufacturing partners to address the technical challenges while maintaining its quality standards.