APPLE VISION PRO PRODUCTION HALTS IN 2025

Apple

Summary:

• Apple production partner Luxshare stopped making Vision Pro headsets in early 2025 after sales dropped to 45,000 units in the holiday quarter
• The company reduced digital advertising spending for the device by over 95% in major markets during 2025
• Apple now focuses on developing a lower-priced model and AI smart glasses as the premium headset fails to gain traction

Apple Vision Pro faces a sharp decline in 2025. The company's manufacturing partner Luxshare stopped production in early 2025 after demand collapsed. Market research shows only 45,000 units shipped during the 2025 holiday quarter, down from 390,000 units in the 2024 launch year.

The $3,499 price tag created a barrier for most consumers. Apple sells the device in only 13 countries, limiting its reach. Early buyers and reviewers identified several problems. The headset weighs too much and places most of the weight at the front. Battery life falls short of user expectations. The app selection never expanded enough to justify the cost.

Sensor Tower tracked Apple's advertising strategy for the device. The data shows the company reduced digital ad spending by more than 95% across the United States and United Kingdom in 2025. This represents a complete reversal from the aggressive marketing push in 2024.

The broader market works against Apple. Meta controls roughly 80% of the VR market with its Quest lineup, which costs far less than Vision Pro. The entire headset category shrank 14% year over year. Apple entered a shrinking market with a premium product.

Industry observers note the contrast with Apple's usual product launches. The company built its reputation on mass-market success, particularly with iPhone. Vision Pro operates in a different category. Apple positioned the device as a "spatial computer" from the start, not a mainstream consumer product.

The technical challenges go beyond hardware. Developers never built the app ecosystem Apple needed. Without compelling software, even well-designed hardware struggles. Vision Pro offered impressive displays and processing power, but users found few reasons to wear the device regularly.

Supply chain sources and recent reports indicate Apple's next moves. The company works on a lower-priced Vision model. Development continues on AI-powered smart glasses. These efforts suggest Apple views Vision Pro as an early experiment rather than a final product.

The headset market presents different challenges than smartphones or tablets. Users must wear devices on their faces for extended periods. This creates comfort and social acceptance barriers that phones and tablets never faced. Apple underestimated these factors.

Meta's success with Quest shows price matters more than technical sophistication in current VR markets. Quest 3 costs a fraction of Vision Pro while offering a large game library and established user base. Meta accepts losses on hardware to build its platform. Apple tried to maintain its premium margins.

The 88% drop in quarterly shipments tells the story. Vision Pro moved from promising launch to production halt in roughly one year. Apple rarely experiences this trajectory with major products.

The company now treats Vision Pro as a learning experience. The technology developed for the headset will inform future products. The spatial computing interface concepts will appear in other forms. Apple plays a long game.

Smart glasses represent the next target. These devices offer lighter weight and better battery life than full headsets. They also face lower social barriers. Apple's work on AI features positions it to integrate intelligence into wearable displays.

The Vision Pro outcome provides a case study in market timing and product positioning. Apple entered too early with too high a price. The technology impressed reviewers but failed to create sustained demand. The company now adjusts its approach while competitors like Meta continue to dominate the accessible end of the market.