Apple has reportedly reduced manufacturing of its Vision Pro spatial computing headset following weaker-than-expected consumer demand. According to Sensor Tower data cited by the Financial Times, marketing spend for the device declined by more than 95% last year. Market research firm IDC estimates just 45,000 units shipped in the fourth quarter, and Chinese assembler Luxshare halted production in early 2025. Analysts point to a steep price point above $3,400, limited app availability (roughly 3,000 titles), and user complaints about weight and comfort. While Apple plans a lower-cost model later in 2026, near-term prospects for Vision Pro appear challenged as the company reallocates resources toward AI-enabled wearables.

Over the past 18 months, Berkshire Hathaway has sold more than 70% of its Apple shares, reducing its position from 906 million to approximately 238 million shares. Warren Buffett’s firm has instead parked cash in short-term Treasuries and redeployed capital into passive vehicles. Observers note that Apple’s roughly 60% total return since late 2023 created an attractive opportunity for profit-taking, especially as Buffett weighs macroeconomic risks. While Apple remains a core holding in many portfolios, Berkshire’s shift underscores concerns about lofty valuations and the pace of near-term growth in the competitive smartphone market.

Despite headwinds in experimental hardware, Apple delivered 8% year-over-year revenue growth in its fiscal fourth quarter, driven by a robust iPhone upgrade cycle and 15% expansion in its services segment. The active installed base of devices reached new highs across every product category. Free cash flow remained substantial, enabling $90.7 billion in share repurchases and continued dividend increases. Management’s guidance for double-digit revenue growth in the December quarter reflects confidence in product momentum and recurring revenue from the App Store, cloud services and subscriptions, positioning Apple’s core business for sustained expansion even as investors wait for breakthroughs in AI integration.

Apple’s progress in artificial intelligence has lagged some competitors, with delays to its next-generation Siri and significant turnover among AI engineering talent. Internally, teams are working on embedding custom AI accelerators into upcoming chip designs and integrating on-device machine learning across iOS and macOS. Analysts highlight that success will depend on Apple’s ability to leverage privacy-focused AI features—such as local voice processing and intelligent photo categorization—to differentiate from cloud-centric rivals. Major software updates scheduled for 2026 will serve as a key test of Apple’s capacity to deliver compelling AI experiences that justify its premium valuation.