Apple‘s new spatial computing device, the Vision Pro, debuted to much fanfare when it launched in the US early this year. But sales have proven slower than Apple expected, according to reliable analyst Ming-Chi Kuo. In a recent Medium post, Kuo outlined several insights into Vision Pro demand and Apple’s plans for the burgeoning product category.

The good news is that despite the slower-than-expected uptake among mainstream US consumers so far, Apple still expects to sell 200,000-250,000 Vision Pro units domestically in 2024 – up from their initial estimates of 150,000-200,000.

Additionally, the improved 3-5 day shipping times indicate that Apple has caught up with demand, rather than demand significantly outstripping supply. This means that while interest has cooled after the initial launch hype, Apple is still drawing in new Vision Pro customers at a steady clip.

Kuo believes the high $1799 starting price is limiting more widespread Vision Pro adoption among regular consumers. He says “if Apple doesn’t cut the price or add more attractive applications, the shipment growth in the US market may be limited.”

Luckily, Apple has planned for slower growth domestically by accelerating its global expansion plans. Thanks to the now-healthy supply levels, Kuo expects Apple to launch the Vision Pro internationally before WWDC this year. The UK, Canada, France, Germany, Hong Kong, Japan, Korea, and Australia are named as potential early markets.

Expanding to more countries will help boost overall demand in the near term. But over the long run, Apple has even more ambitious plans to dominate the nascent AR/VR market.

Kuo reveals Apple has not yet officially begun work on a rumored lower-cost Vision Pro model or a true second-generation device – the Vision Pro 2.

But he estimates the Vision Pro 2 will enter mass production sometime in 4Q25-1Q26. The focus will be on improving production efficiency rather than enhancing specs. So users shouldn’t expect major hardware changes or design overhauls with the 2nd gen.

Given the lengthy manufacturing ramp-up, Kuo believes the Vision Pro 2 likely won’t launch until at least 2027. By then, Apple hopes their spatial computing ecosystem will have expanded tremendously thanks to growing app selection and steady feature improvements.

So while current Vision Pro sales might seem underwhelming, everything looks on track for Apple to lead the charge into our augmented reality future. With patience and long-term vision, exciting new worlds and use cases could open up to consumers once Vision Pro matures into Apple’s next potential smash-hit product line over the next decade.