Apple in its recently concluded Worldwide Developer Conference (WWDC) announced its first augmented reality and virtual reality (AR/VR) headset, Vision Pro, for $3,499.
“They went with a higher resolution display, and between that and all the technology they put in there to power it, it costs seven times more and now requires so much energy that now you need a battery and a wire attached to it to use it. They made that design trade-off and it might make sense for the cases that they’re going for,” Zuckerberg was quoted as saying in the report.
“I think that their announcement really showcases the difference in the values and the vision that our companies bring to this in a way that I think is really important. We innovate to make sure that our products are as accessible and affordable to everyone as possible, and that is a core part of what we do,” he said.
Apple’s bet on a higher price point is surprising, especially when one looks at the falling shipment of AR/VR headsets. According to the International Data Corporation (IDC) Worldwide Quarterly Augmented and Virtual Reality Headset Tracker, the overall AR/VR headset market declined 54.4 per cent year-on-year in Q1CY23; VR headsets accounted for 96.2 per cent of headsets shipped.
While Zuckerberg and Musk may have their view, analysts believe that Apple could still have a winning hand. “While the Vision Pro might not drive significant volumes given its premium price point, it could be the potential catalyst for the AR/VR market as Apple has proven in the past that consumer engagement can deliver willingness to pay premium pricing and Apple’s focus is clearly to hit a home-run on consumer engagement as opposed to volumes with the first device in what admittedly will be a multi-year journey for the platform,” said a JP Morgan report.
According to Tuong Nguyen, director analyst, Gartner, any comparison between Vision Pro and Meta’s headset isn’t fair. “Apple is a high-end consumer electronics brand. Meta is aiming for the broader market. Furthermore, what we currently know about the hardware is that it is likely expensive to make, and there is limited scale at launch. Moreover, it is also easier to move products down the market than, it is to move up the market. I believe the intention and focus (of Apple) will be to initially target high-end users, tech enthusiasts, and early adopters who can afford this price point. In this sense, it will suit its target market.”
Vision Pro leverages Apple’s M2 chip for standalone performance and a new R1 chip to process input from 12 cameras (including 3D Camera), five sensors (LiDAR, TrueDepth, Infrared, etc), and six microphones, as well as enable the spatial audio system. The device also leverages a brand new OS, visionOS, which enables a custom three-dimensional interface with content that is either immersive or present in the user’s physical world, and that is controlled via a person’s eyes, hands, and voice (no controllers).