As the Financial Times reports, Apple is reducing production plans for the Vision Pro headset due to the complex design of the device. The tech giant now plans to produce fewer than 400,000 units of the $3,499 headset in 2024. This information comes from sources close to both Apple and Luxshare Precision Industry Co. – the Chinese company that was initially tasked with assembling the device.

Two China-based component suppliers said Apple is ordering enough components for 130,000 to 150,000 units in the first year. In addition, plans for a more affordable version of the headset have been postponed, the publication reports.

The Vision Pro, which was unveiled last month, is Apple’s latest attempt to shake up the mixed reality industry, which has struggled to gain mainstream acceptance for several years. The device, similar to high-tech ski goggles, will have its own visionOS operating system and a special App Store. It is planned to be released in the US early next year, and then in other regions.

However, the Financial Times reports that these new production forecasts are a significant drop from the company’s previous internal target of selling 1 million Vision Pro units in the first 12 months.

One of the main challenges is the development of internal displays with high resolution, while projecting the user’s gaze onto the external screen. Apple is also working with Korean display makers on a more affordable version of the headset, according to two people with direct knowledge of the matter.