Apple Halts Vision Pro Production as Sales Collapse, Pivots to Smart Glasses

Signaling a retreat from its “spatial computing” ambitions, Apple has reportedly halted production of the Vision Pro and slashed digital advertising support by over 95%.

Manufacturing partner Luxshare Precision Industry Co. stopped building the device at the start of 2025, according to a Financial Times report. Chronologically, this implies the October release of the M5-equipped model relied on existing chassis inventory rather than new manufacturing.

Consumer interest has evaporated, with shipments forecast to hit just 45,000 units in the holiday quarter. Leaving the high-end market open, the collapse invites rivals like Meta Platforms Inc. and Samsung to capture the segment.

Production Lines Go Dark: The Scale of the Retreat

Luxshare Precision Industry Co., Apple’s primary assembler, reportedly ceased production of the Vision Pro chassis at the start of 2025. Such timing indicates the manufacturing freeze occurred nearly ten months before the M5 chip debut in October 2025.

Inventory management appears to be the primary driver, with the supply chain seemingly glutted with unsold units from the 2024 launch window. Shipment figures paint a bleak picture, with approximately 390,000 units shipped throughout 2024 according to IDC.

Forecasts for the critical holiday quarter of 2025 (Q4) have collapsed to just 45,000 units, a negligible figure for a company accustomed to shipping millions of iPhones.

Compounding the hardware retreat is a withdrawal of marketing support. Digital advertising spend in key markets like the US and UK dropped by over 95% year-to-date according to Sensor Tower data cited by the Financial Times (FT).

Erik Woodring, an analyst at Morgan Stanley, told the FT the specific friction points preventing mass adoption: “We can say the cost, form factor and the lack of VisionOS native apps are the reasons why the Vision Pro never sold broadly.”

Such a pullback contrasts with the “spatial computing” revolution promised at the device’s 2023 unveiling.

The M5 Paradox: A ‘Zombie’ Launch in Hindsight?

Apple’s October 2025 event introduced an updated Vision Pro featuring the M5 silicon, creating a confusing narrative alongside the production halt. Technically, the M5 chip brought significant gains to the Vision Pro, including a 4x uplift in AI performance via new GPU Neural Accelerators.

Despite the fanfare surrounding the M5 chip debut, the upgrade likely utilized the stockpile of chassis produced before the January halt, effectively making it a component swap rather than a new manufacturing run.

Also included was the “Dual Knit Band” to address comfort complaints, a tacit admission of the ergonomic failures of the first generation.

Illustrating the corporate optimism that persisted publicly despite internal shutdowns, Bob Borchers, Apple’s VP of Worldwide Product Marketing, claimed the new chip is “setting a new standard for what’s possible in spatial computing.”

Despite these upgrades, the $3,499 price point remained, failing to address the primary barrier to entry identified by analysts.

Strategic Pivot: From Spatial Computers to Smart Glasses

Internal roadmaps have shifted away from the “Vision Air,” a planned lower-cost headset that has now been paused or cancelled. Resources are reportedly being reallocated to “Project Atlas” (or N50), a smart glasses initiative designed to compete with Meta’s Ray-Ban collaboration.

Apple seemingly aims for a lightweight, all-day wearable that leverages AI rather than immersive 3D displays.

Organizational structures reflect this shift, as the dedicated Vision Products Group (VPG) has been dissolved. Engineering teams have been folded into standard hardware divisions under John Ternus.

Software development for visionOS has moved under Apple’s software engineering chief Craig Federighi, signaling the platform’s demotion from a standalone “next big thing” to a component of the broader software environment.

The Vacuum: Meta, Samsung, and Valve Rush In

Apple’s retreat leaves a massive opening in the high-end XR market, which competitors are filling. Meta Platforms Inc. currently commands approximately 80% of the global VR headset market according to Counterpoint Research.

While Cupertino pulls back, its primary rivals are accelerating. Mark Zuckerberg continues to pour capital into Reality Labs, viewing the losses as necessary R&D for the next computing platform.

Samsung and Google have entered the fray with the $1,799 Galaxy XR, undercutting Apple’s price while offering competitive Micro-OLED specs.

Valve has re-emerged with the “Steam Frame” and a new Steam Machine, targeting the high-fidelity PC VR niche. 

Consequently, the market is bifurcating into cheap AI glasses (Meta/Apple future) and high-end gaming/enterprise headsets (Samsung/Valve), with the “general purpose spatial computer” (Vision Pro) finding no home.