(Bloomberg) -- Apple Inc. is slashing production targets for its Vision Pro headset because manufacturers are struggling with the novel gadget’s complex design, the Financial Times reported.

Most Read from Bloomberg

Apple is now preparing to make fewer than 400,000 units of the $3,499 headset in 2024, the Times said, citing unidentified people close to Apple and Luxshare Precision Industry Co., the Chinese firm that’s initially assembling the device. Two China-based suppliers of components said Apple was only asking for enough parts for 130,000 to 150,000 units in the first year, while plans for a cheaper version have been pushed back, the newspaper reported.

Luxshare stock pared earlier gains but was still up about 3.8% on Monday in Shenzhen. Apple was down about 0.9% at $192.24 at 11:46 a.m. in New York.

The news “isn’t surprising to us, as it’s a first-generation product,” Bloomberg Intelligence analysts Anurag Rana and Andrew Girard said in a note. “Our original thesis called for only 500,000 units in the first year (half Apple’s original expectation) given the headset’s $3,500 price tag. We don’t expect the product to have significant financial impact for the next three years.”

Apple recently made Wall Street history after its market value climbed past $3 trillion, as investors continued to pile into big tech firms.

Apple Readies New iPhones, Macs After Vision Pro Debut: Power On

The Vision Pro, unveiled last month, is the company’s latest move to sustain sales momentum and try to propel a mixed-reality industry that for years has struggled to make it into the mainstream. The device, which resembles high-tech ski goggles, will have its own operating system, visionOS, and a dedicated App Store. It’s slated to arrive early next year in the US, followed by other regions later.