In a surprising twist, Apple’s latest hardware offering, the Vision Pro mixed reality headset, appears to be facing a significant drop in demand. The company’s first new hardware device in years is selling less than expected, offering a possible insight into the future of the mixed reality market.
Respected Apple analyst, Ming-Chi Kuo, notes that recent interactions with component manufacturers suggest Apple has significantly lowered its sales expectations. The tech giant now anticipates selling between 400,000 and 450,000 units this year. This is a sharp decline from market consensus estimates, which predicted sales between 700,000 and 800,000 units.
Kuo posted his findings on Medium, stating, “Demand in the U.S. market has fallen sharply beyond expectations.” With no official sales forecast from Apple and no response to a request for comment, it’s difficult to confirm these claims.
Fading Excitement
After the initial excitement surrounding the February launch of Vision Pro, enthusiasm seems to have waned. Apple’s promise of a “new era of spatial computing” has yet to fully materialize. Even tech experts like Garry Tan, CEO of Y Combinator, expressed frustration with the device on Twitter. If Apple is losing the interest of tech insiders, it may spell trouble for the product’s future.
Challenges in the XR Market
The extended reality (XR) market, which includes mixed reality (MR) and virtual reality (VR), has struggled to gain mainstream traction. Despite the advanced capabilities of devices such as the Sony PlayStation VR or Meta Quest, the high cost of these units has deterred many potential buyers. Furthermore, there’s been a reluctance among third-party developers to invest resources in creating content for these platforms, leading to a lack of compelling applications.
The XR space has been so challenging that Meta even decided to license its operating software to other headset manufacturers to try and boost the overall XR ecosystem. Many hoped Apple, with its strong brand recognition and market influence, would be able to break this cycle.
Criticisms and Challenges
Unfortunately, the Vision Pro has faced criticisms for being excessively expensive and uncomfortable. YouTube reviewer Marques Brownlee notably emphasized the device’s weight. Additionally, data suggests a steady decline in new releases for Vision Pro apps, indicating a lack of developer interest.
Kuo warns that the challenge for Vision Pro is to address these issues without compromising the user experience. Despite these concerns, there is some positive news in the XR market. Meta reported that sales in its Reality Labs segment jumped by nearly a third due to Quest headset sales, even as it continues to invest in the XR space.
In conclusion, while the Vision Pro’s initial sales are disappointing, it is too early to predict its overall success or failure. However, Apple’s struggles could serve as a valuable lesson for other companies looking to enter the XR space.
