Apple has reportedly reduced the production targets for its mixed reality headset Vision Pro due to manufacturing complexities, as reported by the Financial Times.

Apple's contract manufacturer, Luxshare, is reportedly preparing to produce fewer than 400,000 units of the Vision Pro headset in 2024 due to manufacturing complexities, notably with the device's micro-OLED displays and outward-facing, curved lenticular display. This production target is significantly lower than the previously anticipated 12-month sales target of one million units. Apple is also said to be working with Samsung and LG on a second, more affordable version of the headset, slated for release in 2024.

Wellsenn XR uncovered that the materials for Apple's Vision Pro cost around USD 1,590, which makes up nearly half of the device's USD 3,499 price tag. Furthermore, Apple is collaborating with various Chinese and Taiwanese contractors, including 11 Taiwanese firms like Largan Precision Co, Genius Electronic Optical Co, GIS-KY, and Taiwan Semiconductor Manufacturing Co, to produce and deploy the Vision Pro.

Analyst QuickTake: In February 2023 , Apple was to reportedly partner with Foxconn to work on developing a cheaper AR headset. The shift toward Samsung and LG could be due to their expertise in manufacturing OLED displays and their relationship with Apple in providing display panels and other components for Apple devices.