I also wanted to circle back around Spatial Computing… because it appears after all the noise.. well.. Apple’s Vision Pro mixed reality headset, which initially drew crowds and sold out quickly, is now experiencing plummeting interest and sales. Some retail stores are struggling to sell even a handful of units in a week, and demand for demos has significantly decreased. Complaints from customers include impracticality in everyday life, discomfort, difficulty finding apps, and a sense of isolation.
Apple is reportedly cutting its Vision Pro headset shipment forecast for the rest of the year due to cooling demand. The company expects to sell only around 400,000 to 450,000 units in 2024, compared to the previous market consensus of 700,000 to 800,000. This unexpected drop in demand has led Apple to adjust its headset roadmap and may delay the release of a lower-cost mixed-reality headset.
Meta has announced that its VR OS, now Horizon OS, will be open to third-party manufacturers, allowing future headsets from Asus, Lenovo, and Microsoft to connect via the same Meta Quest app. The move aims to expand Meta’s footprint and compete with other players in the VR/AR market, such as Apple, Sony, Google, and Samsung. Meta is also introducing changes to its Quest mixed reality software. It includes a more visible App Lab and an open mixed reality framework for better AR-like experiences on future headsets.
A survey by Piper Sandler reveals that the use of VR devices among teenagers in the US has increased, with weekly usage growing from 10% to 13% compared to the previous year. The study also shows that 33% of US teenagers own a VR device.
The hype around the Vision Pro has faded and virtually disappeared from public conversation. Apple is working on addressing some of the issues, but the lack of popular apps is the headline. There is something in this space, and I have been consistent in that the key is use case. That use case has yet to emerge. Let’s keep an eye on this space; we care … to wait for the use case.