Apple (NASDAQ: AAPL) stock fell during intraday trading Wednesday amid news of the tech giant halting development on its next high-end Vision device.
According to a report from The Information on Tuesday, Apple has decided to suspend work on its next high-end Vision headset, the Vision Pro. The decision comes amidst a demand slowdown for the $3,500 device after initial excitement.
An employee at a key component manufacturer for the Vision Pro confirmed the suspension. However, Apple remains committed to releasing a more affordable version of the Vision headset with fewer features by the end of next year. Sources within Apple’s supply chain and manufacturing disclosed this information.
Moreover, the tech giant plans to stimulate sales of the $3,500 Vision Pro headset by introducing it in eight new countries, including China and Japan. Despite initial excitement surrounding the Vision Pro, demand has reportedly slowed, prompting Apple to explore new markets and marketing strategies.
Earlier this month, Apple showcased its AI strategy and announced a partnership with OpenAI at its annual developer conference. This event contributed to a resurgence in Apple’s stock, which has risen more than 11% this year, rebounding from earlier softness attributed to weaker iPhone demand in China versus its tech peers.
According to The Information, Apple had initially intended to offer two models of its Vision product, akin to the standard and Pro versions of its iPhone. However, the company gradually shifted its focus away from developing the successor to the Vision Pro, reallocating resources to optimize costs and improve the components of the first-generation Vision.
Apple (NASDAQ: AAPL) Stock Reaction
On Wednesday, AAPL stock declined 1.10%, closing at $214.29, marking a 3.45% increase for the week. The trading volume was 79,943,256 shares, significantly higher than the average daily volume of 65.03 million.
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