Proactive Investors - Apple Inc (NASDAQ:AAPL, ETR:APC) is cutting 2024 shipping forecasts for its Vision Pro headset as the headset begins to suffer from weakening demand, analysts reckon.
Orders for the US$3,500 headset have been cut before it even received a launch outside of the US, analyst Ming-Chi Kuo at TF International Securities revealed.
Apple now forecasts between 400,000 and 450,000 Vision Pros will be sold in 2024, compared to market consensus of between 700,000 and 800,000.
Kuo also believes the tech giant is now rejigging its plans for the headset and may push back the release of a cheaper version beyond 2025 – or even cancel the product completely.
While the Vision Pro was initially praised for its technical prowess and innovation, customers have begun returning the product citing that the headset gives them headaches or leads to motion sickness.
It comes days after research found iPhones experienced a sharp drop in demand in China during the first quarter of 2023.
Despite all of Apple’s demand woes, analysts at Bank of America (NYSE:BAC) believe it will bring in around US$1 billion from Vision Pro sales during the second quarter.
“While we acknowledge that the demand environment is weak, we believe the stock is already reflecting this (down 14% in the year-to-date) and our aggregate estimates for the year remain relatively unchanged,” the BofA analysts wrote on Monday.