Apple Vision Pro, Meta Quest 3 highlight divergent strategies

The launch of Meta Quest 3 and Apple Vision Pro highlight divergent strategies for immersive technology revolution, Kiran Raj, Practice Head of Disruptive Tech at GlobalData, said.
Apple’s Vision Pro at WWDC 2023“Apple’s loyal user base and tendency to embrace new technology are expected to provide a firm springboard for Vision Pro. Coupled with significant advancements in VR and AR technology and increased consumer readiness since past mishaps, the stage is set for more successful adoption of these immersive technologies,” Kiran Raj said.

The contrasting approaches of the two firms to the VR and AR market are becoming increasingly clear. Meta’s strategy with Quest 3 appears to prioritize an affordable, comfortable, and enhanced VR experience, likely aimed at engaging a wider consumer demographic.

Apple’s Vision Pro is designed for the upper echelons of the market, presenting a mixed reality headset replete with high-definition displays and unique functionalities such as eye tracking, hand tracking, and voice inputs.

“Meta’s Quest 3, retailing at $499, exemplifies a refined VR headset design, boasting a 40 percent reduction in size and integrating a fresh Snapdragon chipset to bolster VR and mixed reality performances

Apple’s Vision Pro is listed at $3,499. It incorporates a dual M2 and R1 chip configuration, offers 4K resolution per eye, and includes a two-hour battery life with an auxiliary battery pack. It eschews traditional controllers, opting for hand tracking and voice commands, and features an innovative Eyesight display that discloses the user’s eyes.

TrendForce anticipates a modest shipment volume of approximately 200,000 units for Apple Vision Pro in 2024. The market’s response will heavily depend on the subsequent introduction of consumer-oriented Apple Vision models and the ability of Apple to offer enticing everyday functionalities that will drive the rapid growth of the AR market as a whole.

Meanwhile, analysts lauded Apple’s Vision Pro on Tuesday for its impressive technology, but warned that it will be a few years before the $3,499 augmented reality headset sees widespread adoption, Reuters news report said.

The device, which investors treated with a lukewarm reception, marked the company’s first new product line since the launch of the Apple Watch nearly a decade ago.

Chief Executive Officer Tim Cook said it could spark the dawn of “spatial computing”, where digital content blends with the physical world, just like how the iPhone changed the world of mobiles.

That vision, analysts said, could take some time to materialize because the high price tag will likely dissuade most buyers and the product does not have any clear use beyond entertainment in a still nascent augmented reality (AR) market.

“Apple proved they have a vision for the role AR technology could play for consumers … and Vision Pro looked sleek/differentiated versus incumbents and performed with clear potential,” Morgan Stanley analysts said.

“However, the Vision Pro is not ready for mass consumption,” they added, pointing to a bulky external battery pack and the lack of a “killer app”, among other issues.

Analysts also warned that cheaper AR offerings from market leader Meta Platforms could be an impediment as the Meta Quest 2 retails at $299 and its successor unveiled last week, Meta Quest 3, is priced at $499.

“Although Apple will give Meta the biggest challenge since the Facebook owner’s entry into the segment, it won’t be able to overtake Meta in terms of shipments,” said Harmeet Singh Walia, senior analyst at Counterpoint Research.

But he added that Apple may not need to dominate the market in terms of shipments to become the most prominent player.

“As with smartphones, in which Apple usually has well over 80 percent share of profitability with around 20 percent share of shipments, it may become the most successful player without becoming most widely adopted,” Walia said.

The uncertainty regarding Vision Pro sales also drove a wide range of predictions on its expected shipments once the device goes on sale next year.

KGI Securities analyst Christine Wang said she expected shipments of 200,000 in the first year, while Credit Suisse predicted Apple could ship over 1 million units in the period.

For comparison, Apple sold more than 1.4 million iPhones in the first year after launch, garnering $630 million in sales.

Still, several analysts believe the company has created a “no lose” situation for itself through its move into AR.

James Cordwell of Atlantic Equities said “if the device were eventually to drive a platform shift from mobile to AR, Apple has positioned itself to extend its leadership from the smartphone era to that new epoch.”

“If it fails to gain traction, then it will most likely be because VR/AR is a technological dead end, thus extending the dominance of the smartphone as the primary consumer device.”