Apple Vision Pro pre-order sales were below industry expectations

Apple’s Vision Pro headset arrived on the pre-order scene with a bang, selling out immediately and extending shipping times to 5-7 weeks within hours. This initial surge aligns with analyst predictions of strong demand, but a closer look reveals potential nuances in the demand pattern.

Data suggests Apple sold between 160,000 and 180,000 Vision Pro units during its first pre-order weekend. This strong performance aligns with expectations generated by analyst predictions and pre-launch hype. Additionally, the rapid extension of shipping times further underlines the initial enthusiasm for the product.

However, a key element emerges when comparing Vision Pro’s pre-order trends to popular iPhone models. Unlike iPhones, where pre-order demand typically grows and extends shipping times further, Vision Pro’s shipping dates remained unchanged 48 hours after pre-orders opened. This raises questions about the sustainability of initial demand beyond the initial surge likely driven by core fans and early adopters.

Multiple factors could potentially explain this difference in demand patterns:

• Premium price point: Starting at $3,499, Vision Pro occupies a significantly higher price bracket than most VR/AR headsets, potentially limiting its appeal to a broader audience.
• Niche applications: While Apple envisions diverse uses for Vision Pro, many potential applications are still developing, leaving some consumers hesitant about its immediate value proposition.
• Production challenges: Reports suggest production efficiency issues may impact supply, leading to pre-orders filling up quickly but not necessarily reflecting sustained demand.

While achieving Apple’s target of 500,000 units sold this year seems feasible, the long-term success of Vision Pro hinges on several factors:

• Expanding appeal: Convincing a wider range of consumers beyond the tech enthusiast niche about Vision Pro’s value proposition will be crucial. This could involve developing compelling applications, strategic partnerships, and adjusting the price point.
• Global market performance: Apple’s success in markets outside the US will be important. Cultural preferences and price sensitivity in different regions could impact demand.
• Software updates: Continuous improvement and expansion of the software platform will be essential to keep users engaged and attract new ones.

With over 1.2 billion active users, Apple has a massive potential customer base. However, current pre-order trends suggest that Vision Pro is still a niche product, appealing primarily to early adopters and tech enthusiasts. 

More here.