Is the $3,499 price tag killing Apple’s Vision Pro? Affordable N109 incoming!

According to a new report, Apple has suspended work on the second-generation Vision Pro headset to concentrate on developing a more affordable version of the device.

Apple Vision Pro

Apple initially planned to expand its Vision lineup with a “Pro” model and a more economical standard version. However, due to weaker-than-expected demand and high production costs, the company has reassigned resources away from the next-generation Vision Pro headset. According to sources, Apple informed at least one supplier of this suspension, signaling a significant shift in its AR/VR strategy.

In recent months, Apple has focused on reducing the cost of components for the first-generation Vision Pro and developing an upgraded display for future models. The high cost of the current Vision Pro, priced at $3,499, has been a barrier to widespread adoption. By concentrating on a cheaper model, Apple aims to lower the entry point for consumers.

Work on the affordable Vision device, codenamed “N109,” began in 2022. Apple’s goal is to price this model similarly to a high-end iPhone, around $1,600. Despite this ambition, the tech giant has faced challenges in balancing cost reduction with maintaining quality features. The more affordable model is expected to retain the high-end display components of the Vision Pro but will feature fewer cameras, a simpler headband, and smaller speakers.

Vision Pro

A supplier involved in making key components for the Vision Pro reduced its production by 50% in May, following a revised forecast from Apple predicting weaker demand. Apple is reported to have produced no more than 500,000 Vision Pro units this year, with minimal plans for increasing production in the near future.

Initial reviews of the Vision Pro were positive regarding its capabilities but highlighted concerns about its high price and weight. These factors have influenced Apple’s decision to focus on a more accessible version. The Vision Pro’s international launch, expanding to countries like China, Japan, Australia, and France, indicates Apple’s commitment to this product line, even as it pivots to address market realities.

Amidst these developments, Apple is also advancing its artificial intelligence (AI) capabilities. The upcoming Apple Intelligence service, set to launch this fall, will bring new AI features to many Apple devices. These features include text summarization, email writing assistance, and enhanced data connectivity across apps.

(via The Information)

About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.