Apple Vision Pro Crisis: Production Halted & Marketing Slashed by 95% as Sales Plummet
Apple's "spatial computing" revolution faces a major setback. Reports confirm a 95% cut in marketing and halted production for the $3,500 Vision Pro headset amidst weak global sales. What went wrong?
Cupertino / New Delhi: The device that was supposed to replace the iPhone and usher in the era of "spatial computing" seems to have hit a massive roadblock. In a surprising turn of events for the tech giant, Apple has reportedly decimated its marketing budget for the Vision Pro headset and halted production at its primary manufacturing hubs.
According to a bombshell report by market intelligence firm Sensor Tower and The Financial Times, Apple cut its marketing spend for the Vision Pro by over 95% in 2025. This drastic move is accompanied by reports that Luxshare, Apple's Chinese manufacturing partner, completely ceased production of the headset in late 2025 due to a surplus of unsold inventory.
The Numbers: A Stark Reality Check
When Apple launched the Vision Pro in early 2024, it projected sales of 3 million units in the first year. The reality, however, has been far harsher.
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Plummeting Sales: The International Data Corporation (IDC) estimates that Apple sold a mere 45,000 units in the fourth quarter of 2025—typically the strongest quarter for consumer electronics due to the holiday season.
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Inventory Pile-Up: Reports suggest that Apple has between 500,000 to 600,000 unsold units sitting in warehouses. This backlog is sufficient to meet current demand for the next year without manufacturing a single new device.
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Marketing Withdrawal: The 95% cut in digital advertising spending in key markets like the U.S. and U.K. signals that Apple has effectively stopped trying to push the current model to mainstream consumers.
Why Did the Vision Pro Stumble?
Analysts and tech reviewers have identified a "trifecta of issues" that prevented the Vision Pro from becoming the next iPad or Apple Watch:
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The Eye-Watering Price: At $3,499 (approx. ₹2.9 Lakh), the headset was priced out of reach for the vast majority of consumers. In a global economy grappling with inflation, a luxury gadget with limited utility became a hard sell.
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Comfort and Design: Despite its sleek aluminum and glass aesthetic, users consistently complained about the weight. Weighing over 600 grams, the device caused neck strain and discomfort during prolonged use, earning it the criticism of being "too heavy to be fun."
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The "App Gap": The Vision Pro launched with the promise of millions of apps, but the reality was different. Major developers like Netflix, Spotify, and YouTube declined to build native apps for the platform. Even two years after launch, the ecosystem lacks a "killer app" that justifies the purchase.
Comparison with Competitors
While Apple struggles, its rival Meta (formerly Facebook) continues to dominate the VR/AR space.
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Meta Quest: With a price point under $500, Meta's Quest headsets hold nearly 80% of the market share. They offer a vast library of games and fitness apps that appeal to average users.
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Smart Glasses: Consumer interest has arguably shifted towards lighter, AI-integrated smart glasses (like the Ray-Ban Meta glasses) rather than bulky, full-immersion headsets.
What’s Next? The M5 Upgrade and a Cheaper Model
Despite the production halt, Apple has not abandoned the category.
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Vision Pro with M5: In late 2025, Apple quietly updated the headset with the new M5 chip to improve performance and AI capabilities, though this did little to spike sales.
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Project "Alaska": Rumors indicate that Apple is pivoting its strategy to develop a lower-cost headset (possibly named "Apple Vision" or "Vision Air") aimed for release in 2026 or 2027. This device would likely strip away expensive features like the external "EyeSight" display to bring the price closer to $1,500.
Conclusion
The scaling back of the Vision Pro is a rare "commercial flop" for a company accustomed to turning everything it touches into gold. It serves as a reminder that even the world's most valuable company cannot force a market to exist before the technology—and the price—is ready for the masses. For now, the "spatial computing" revolution is on hold, waiting for hardware that is lighter, cheaper, and more useful.
Disclaimer: This article is based on reports from Sensor Tower, IDC, and The Financial Times as of January 2, 2026.
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