Apple scaled back production targets for its $3,500 mixed-reality headset Vision Pro, which is due to go on sale in the US in early 2024, Financial Times reported.

Various sources told FT the complexity of the headset design and difficulties in production are behind the set back.

Apple partnered with Chinese contract manufacturer Luxshare to assemble the Vision Pro, with sources from each telling the newspaper it is preparing to make less than 400,000 units in 2024.

FT added a pair of China-based suppliers of components required to manufacturer the device said Apple ordered enough parts for between 130,000 and 150,000 devices.

The projections mark a significant cut to earlier internal sales target of 1 million units within the first 12 months and shows Apple’s lack of confidence in being able to scale production, FT reported.

One of the major issues facing Luxshare regards the two micro-OLED displays, with Apple reportedly concerned about the number of defective units produced.

With a price point set at $3,500, two other sources said Apple is already working on a more-affordable generation of the headset which could appeal to mass market consumers. However, the production delay for the original device is having a knock-on effect.

Analysts hailed the Vision Pro as Apple’s most important device debut in years when it unveiled the device last month, noting it represents the company’s long-trailed move into the AR headset space.

Richard Windsor, founder of industry blog Radio Free Mobile, said the problem with production stems from the fact that device “is an entirely new take on the metaverse and with Apple’s demands for the user experience, it has to use cutting-edge components”.

“This is the first sign of trouble with this device, and I suspect it will not be the last.”