The interest in the Vision Pro VR headset is diminishing after the initial preorder sell-out, as per a recent report
Apple’s eagerly awaited Vision Pro virtual reality headset swiftly sold out upon the opening of preorders last Friday. However, there are troubling indicators of declining demand, as noted by Ming-Chi Kuo, a prominent Apple analyst.
Kuo approximates that Apple managed to sell between 160,000 to 180,000 units during the launch weekend, gauged by the quick escalation of shipping times to 5-7 weeks within hours of preorder commencement. Nevertheless, these extended delivery estimates remained unaltered 48 hours after the initiation of preorders. Kuo expressed concern that this “raises a major concern,” suggesting that demand might decrease rapidly once early adopters and tech enthusiasts complete their orders.
The analyst emphasized that with a sought-after new iPhone model, shipping times typically continue to rise 24-48 hours post-launch due to growing demand, even after the initial sell-out. However, this pattern did not manifest with the Vision Pro.
Although the headset quickly sold out, indicating robust initial interest, the unchanging delivery dates suggest that preorders may have rapidly declined after the early enthusiasts made their purchases. This differs from the demand for new iPhones, which continues to rise in the days following the opening of a preorder window.
Kuo anticipates that Apple can easily deliver 500,000 Vision Pro units in 2024. However, in his earlier projections, he estimated a production of only 60,000-80,000 headsets for the launch day on February 2.
While the $3,499 Vision Pro isn’t anticipated to have a substantial impact on Apple’s revenues, analysts on Wall Street are keenly observing how the reception of Apple’s inaugural VR product may indicate its future potential in a new category. According to Kuo, the Vision Pro is currently considered “a very niche product.” The robust preorder performance suggests strong early interest from tech enthusiasts willing to pay a premium. However, the quick decline in interest after the launch raises concerns about its mainstream appeal and whether MR (mixed reality) technology is compelling enough to extend beyond a niche audience.