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Apple’s Vision Pro headset, initially launched in early 2023 at a premium price point of $3,500, is reportedly facing a series of production and demand challenges less than a year after its debut.

Sources indicate to tech platform The Information that Apple has scaled back production since mid-2023, with some insiders suggesting that the tech giant may even pause manufacturing of this inaugural version by the end of the year. Reports from Luxshare, Apple’s assembly partner in China, also reveal that production has been halved from 2,000 units per day to around 1,000, highlighting a noticeable shift in output.

Limited consumer demand for the Vision Pro’s high-end model, attributed to both its steep price and slow app adoption, appears to have played a significant role in this recalibration. While Apple has managed to sell around 370,000 units within the first three quarters of 2023, this falls significantly short of broader market expectations, especially when contrasted with Meta’s more affordable Quest series, which dominates sales at a $300 price point.

This initial response is prompting Apple to rethink its AR product strategy. Speculation is growing that a more budget-friendly version of the Vision Pro may be in the works, potentially launching in 2025. Such a pivot would align with Apple’s broader ambitions in augmented reality, with rumors circulating about several other AR initiatives, including smart glasses and AirPods equipped with camera capabilities.

While the launch of the Vision Pro didn’t capture a wide consumer base, Apple appears to be playing a long game. CEO Tim Cook acknowledged that the Vision Pro was intended for early adopters, or “people who want tomorrow’s technology today.” Analysts view Apple’s measured production cut as a strategic pause, giving the company time to recalibrate for a more inclusive lineup that could make Apple’s AR vision accessible to a broader audience.