Apple Abandons Vision Pro After M5 Failure, Shifts Focus to MacBook Ultra and Foldable iPhone

<h2>Breaking: Apple Halts Vision Pro Development</h2> <p>Apple has officially stopped all work on the Vision Pro headset after the M5 refresh failed to spark consumer interest, <em>MacRumors</em> has learned. Internal sources confirm the Vision Pro team has been disbanded and members reassigned to other projects, including the Siri team under former Vision Pro chief Mike Rockwell.</p><figure style="margin:20px 0"><img src="https://images.macrumors.com/article-new/2026/05/top-stories-2026-05-02.jpg" alt="Apple Abandons Vision Pro After M5 Failure, Shifts Focus to MacBook Ultra and Foldable iPhone" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: www.macrumors.com</figcaption></figure> <p>“Apple has all but given up on the Vision Pro,” a source familiar with the situation told <em>MacRumors</em>. The M5 upgrade, released in October 2025, added a faster chip and a more comfortable band but no other hardware changes, leaving the device unable to compete in a declining market.</p> <a id="what-this-means"></a> <h3>What This Means for Apple's Strategy</h3> <p>This pivot signals Apple’s retreat from high-risk experimental hardware. Resources are now being redirected to proven product lines with larger addressable markets.</p> <h2>MacBook Ultra: Six New Features Confirmed</h2> <p>In a major shift, Apple is planning a groundbreaking redesign of its high-end MacBook lineup, targeting an early 2027 launch. Bloomberg’s Mark Gurman reports the device will likely be branded “MacBook Ultra,” positioned above the MacBook Pro with a premium price point.</p> <p>According to Gurman, the MacBook Ultra will include six key features:</p> <ul> <li><strong>OLED display</strong> for vibrant colors and deep blacks</li> <li><strong>Touch capabilities</strong> on the screen</li> <li><strong>Dynamic Island</strong> notch integration</li> <li><strong>M6 Pro and M6 Max chips</strong> built on TSMC’s 2nm process</li> <li><strong>Thinner design</strong> with reduced bezels</li> <li><strong>Built-in cellular connectivity</strong> for always-on internet</li> </ul> <p>“Apple might use MacBook Ultra branding for these models,” Gurman stated, indicating a clear tier above the current MacBook Pro.</p> <h2>Foldable iPhone Ultra Lacks Key Features Despite $2,000 Price</h2> <p>Apple’s first foldable iPhone, dubbed “iPhone Ultra,” is expected to cost around $2,000 but will omit at least five features found on the iPhone 18 Pro. Dummy models shared by Sonny Dickson and Vadim Yuryev reveal the absence of <strong>MagSafe</strong>, the <strong>Action Button</strong>, <strong>Face ID</strong>, a <strong>Telephoto camera lens</strong>, and an <strong>under-display Touch ID</strong> sensor.</p> <p>“These are glaring omissions for a device costing twice as much as a standard iPhone,” noted industry analyst Ming-Chi Kuo. Apple appears to be cutting corners to achieve the foldable form factor.</p> <h2>App Store Introduces Monthly Subscriptions With 12-Month Commitment</h2> <p>Apple this week announced a new subscription option for developers: monthly payments with a full-year commitment. This allows developers to offer discounted annual prices while giving users the flexibility to pay month by month.</p><figure style="margin:20px 0"><img src="https://images.macrumors.com/t/wWMfngpiTzEjFAUdW06dUV5kOt8=/1600x/article-new/2026/05/top-stories-2026-05-02.jpg" alt="Apple Abandons Vision Pro After M5 Failure, Shifts Focus to MacBook Ultra and Foldable iPhone" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: www.macrumors.com</figcaption></figure> <p>“People can cancel their subscription at any time, but they must finish out the remaining months of the 12-month term,” an Apple spokesperson explained. The feature aims to boost developer revenue and user retention.</p> <a id="background"></a> <h2>Background</h2> <p>The week’s Apple news centers on a strategic realignment. The Vision Pro’s failure — despite a high-profile M5 refresh — underscores the limited appeal of mixed-reality headsets. Simultaneously, Apple is doubling down on high-margin devices like the MacBook Ultra and foldable iPhone Ultra. The App Store subscription change reflects a push for recurring revenue, a model proven successful by services like iCloud and Apple Music.</p> <p>These developments come amid broader industry trends: declining interest in VR/AR hardware, a growing demand for foldable smartphones (led by Samsung), and a premiumization of laptops with OLED and touch capabilities.</p> <a id="what-this-means"></a> <h2>What This Means</h2> <p>Apple is effectively placing its bets on two revolutionary devices: a MacBook with a touchscreen that could blur the line between laptop and tablet, and a foldable iPhone that challenges conventional smartphone design. However, the omissions on the iPhone Ultra raise questions about its value proposition. Meanwhile, abandoning the Vision Pro frees up talent and resources — but it also marks a rare public retreat for a company that prides itself on reinventing categories.</p> <p>For consumers, the MacBook Ultra and iPhone Ultra symbolize a retreat to safe, iterative innovation — albeit with premium pricing. The App Store change offers modest benefits for developers and users.</p>