Magic Leap Sells Only 6,000 AR Headsets Amid Financial Struggles
Magic Leap reportedly sells just 6,000 units of its $2,300 augmented reality headset in six months, falling far short of initial projections. The disappointing sales force the startup to implement cost-cutting measures and lay off dozens of workers.
Magic Leap faces harsh reality as a new report reveals the company sells only about 6,000 units of its $2,300 Magic Leap One headset in its first six months on the market. This disappointing figure falls drastically short of CEO Rony Abovitz's initial hope of selling 1 million units in the first year. Sales are so sluggish that the company even starts giving the headsets away to its employees for free.
The weak consumer demand puts significant financial strain on the heavily funded startup, prompting Magic Leap to lay off dozens of employees across multiple departments. To conserve cash, the company also freezes work travel for certain teams and slows down its hiring pace. These cost-saving measures highlight a tough transition from a hyped Silicon Valley darling to a business struggling to find its market.
Financial records indicate Magic Leap burns through approximately $40 to $50 million per month throughout much of 2018, raising serious questions about its long-term sustainability. Additionally, notable leadership changes occur as Alphabet CEO Sundar Pichai departs the board of directors, though a source claims this is strictly due to scheduling demands. Google maintains its presence on the board by replacing Pichai with Google Maps vice-president Jennifer Fitzpatrick, while a Magic Leap spokesperson strongly denies the accuracy of the report's claims.