Apple Retreats on Vision Pro as Consumer Demand Falls Short

Apple is scaling back the Vision Pro after weak sales. For the payments ecosystem, it is a sign that “spatial computing” will remain a niche channel for shopping, identity and in-app spending for now.

In a Jan. 1 report, the Financial Times said Apple has cut back both manufacturing and marketing for the $3,499 headset. Citing International Data Corporation (IDC), the FT reported that Apple’s Chinese manufacturing partner Luxshare halted production at the start of last year after shipping about 390,000 units in 2024 during the Vision Pro’s launch. The FT also cited Sensor Tower estimates that Apple has reduced digital advertising spending for the headset by more than 95% year to date in markets including the U.S. and the U.K.

Apple has not disclosed Vision Pro sales. IDC expects Apple to ship just 45,000 new units in the last quarter of 2025, the holiday period, the FT said. Apple sells the device directly in 13 countries and did not expand its international rollout in 2025, according to the report.

“We can say the cost, form factor and the lack of VisionOS native apps are the reasons why the Vision Pro never sold broadly,” Morgan Stanley analyst Erik Woodring told the FT.

The story also cited complaints that the device is heavy and uncomfortable for long wear and has relatively low battery life. Apple launched an upgraded M5 version in October with a more powerful chip, longer battery life and a redesigned headband, and is expected to release a cheaper, lower-spec version this year, the FT reported.

The overall virtual reality headset market fell 14% year over year, the FT said, citing Counterpoint Research, and Meta’s Quest line accounts for about 80% of unit sales. Apple says 3,000 apps are designed specifically for Vision Pro, and the headset has gained some traction in business uses such as pilot training and surgeries. Apple declined to comment.

Even as the headset effort cools, Apple’s payments and identity footprint continues to expand through Apple Pay and Apple Wallet.

At PYMNTS, recent Apple coverage has focused less on the company’s hardware ambitions and more on the steady expansion of its payments and identity infrastructure. Reporting over the past year has tracked how Apple Wallet is evolving into a central hub for digital identity, highlighting Apple’s rollout of government-issued IDs inside the wallet and its push to make the iPhone a credential for travel, age verification and in-store authentication. PYMNTS has also examined Apple Pay’s growing role in fraud reduction and secure checkout, as well as partnerships extending buy now, pay later options through Apple Pay in key European markets.