Apple is reportedly pumping the brakes on Vision Pro production

• Apple is cutting Vision Pro production, possibly halting it by year-end, The Information reported.
• Demand for the $3,500 devices has been weak, said analyst William Kerwin.
• Apple may be developing a cheaper, smaller headset to boost consumer interest.

Apple is reportedly reducing Vision Pro production, but that doesn't mean it's out of the headset game.

On Monday, The Information reported that Apple has been scaling back production of the $3,500 headset since the summertime, and it could fully stop making the Vision Pro as we know it by the end of the year.

Although Apple hasn't confirmed any changes to production, employees at Luxshare, the Chinese manufacturer responsible for assembling Vision Pros, said it's making about half as many units per day as it did during peak production, according to the report.

A representative for Apple didn't immediately respond to a request for comment from Business Insider.

Analysts told Business Insider that they wouldn't be shocked if Apple scaled back production on the devices — but they also wouldn't be concerned by such a move.

Jacob Bourne, a tech analyst at BI sister company EMARKETER, said it "makes sense that Apple would scale back Vision Pro production," citing the price point and weak consumer appeal.

Apple CEO Tim Cook recently told The Wall Street Journal that the pricey piece of tech is for "people who want to have tomorrow's technology today."

"At $3,500, it's not a mass-market product," Cook said. "Right now, it's an early-adopter product."

"Ultimately, we don't see this as surprising, given many reports of weaker demand for the Vision Pro and Tim Cook's recent comments about it not being a mass-market product," said William Kerwin, an analyst at Morningstar.

Tech analyst Dan Ives of Wedbush Securities said reducing production is a "smart strategy." Especially if the reports of Apple working on a lower-cost version of the Vision Pro are true.

"This is all heading toward a lower-cost Vision Pro with more features that can scale," Ives said.

Vision Pro reviewers have criticized the headset for a lack of apps, but developers don't seem convinced that consumers will line up to spend nearly $4,000. The Vision Pro was released in February, and few, if any, apps have taken off in popularity.

Ives and Kerwin said they believe a smaller, cheaper headset from Apple could change that. Bloomberg has reported that the tech giant is working on one, and supply-chain analyst Ming-Chi Kuo recently said he predicts Apple will release "a lower-priced version with downgraded specs."

Kerwin said Apple's ultimate goal is likely "a form factor closer to glasses." Morningstar's current rating for Apple is 2 stars.

Bourne said a reduction would not indicate is Apple is ready to give up on mixed reality. He also said he predicts a pair of smart glasses on the horizon to challenge competitors such as Meta and Snap.