Apple this week reignited expectations for the virtual reality (VR) and augmented reality (AR) industry that has constantly misfired over the years, but the hefty price tag may stifle demand, at least initially.
The Apple Vision Pro will only be available globally next year, at a starting price of $3,499 (around R66,000), about the price of three new 15-inch MacBook Air laptops, which were also unveiled this week.
A week earlier, arch-rival Meta unveiled its new VR headset, the Meta Quest 3, with a $500 price tag.
Dan Scarfe, CEO of Canadian mixed reality software company XRAI Glass, said the price tag of Apple Vision Pro is “even more eye watering than feared”.
“Consumers will be able to choose from buying seven Meta 3s, three-and-a-half Meta Pros, or one Vision Pro. Will people pay the premium?” he asks.
“History tells us yes. Super luxe quality sells, as Apple has proven time and again. The biggest winners though? The existing glasses manufacturers such as Rokid Corporation and the chips that power them from Qualcomm. Rather than waiting until next year [for the Apple Vision Pro], consumers can get these incredible experiences today at a fraction of the price.”
The timing of Meta's release of the VR headset was almost certainly intended to steal Apple’s thunder.
However, because the Vision Pro addresses the limitations of previous AR devices, it will likely lead the field from a technology point of view. It introduces the first AR operating system, VisionOS, which opens the way to a new kind of app ecosystem.
If Apple applies the iPhone strategy of introducing multiple models at different price points, and brings down the entry level significantly, it will also lead in market share.
Mark Gurman, Bloomberg consumer technology writer, encapsulates the core issue facing Apple: “Mixed-reality headsets are still a nascent field, and many people are hesitant to wear a computer on their face. The Apple device will also have design quirks, such as an external battery pack.”
However, he agrees with Apple that the headset could be the future of the computer and believes the company needs to start somewhere.
“While the first model will likely be a flop in terms of unit sales — at least compared with Apple’s other categories — the company could still become the market leader within a matter of quarters.”
According to the International Data Corporation that shouldn’t be too hard. Its Worldwide Quarterly Augmented and Virtual Reality Headset Tracker showed that global shipments of AR and VR headsets slowed significantly in the first quarter of 2023 “as macroeconomic conditions worsened and the market cooled compared to the pandemic-driven highs seen last year”.
The overall AR/VR headset market declined 54.4% year over year, with VR headsets representing 96.2% of headsets shipped. Meta led the market with a 47.8% share, but Sony's new PSVR 2 captured 35.9% share during the quarter. Apple hopes to capture even more.
Apple CEO Tim Cook coined Apple’s own term for the technology category: “spatial computing”. He also positioned it as a key new product segment for Apple.
“Just as the Mac introduced us to personal computing, and iPhone introduced us to mobile computing, Apple Vision Pro introduces us to spatial computing,” he said.
“Vision Pro is years ahead and unlike anything created before — with a revolutionary new input system and thousands of groundbreaking innovations. It unlocks incredible experiences for our users and exciting new opportunities for our developers.”
The iPhone has proven to be a developer’s dream, with the App Store that it introduced having generated $1.1-trillion in total billings and sales for developers in 2022, according to data released by Apple last week.
The Mac computer range includes the world’s best-selling laptop, the MacBook Air.
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