a Recent media statement From market research firm IDC predicts that Meta (Facebook’s parent company) may not be able to compete in the mixed reality business in the long term if its strategy remains unchanged.
The media release provides a comprehensive view of the VR market. In the statement, IDC Research Director Jitch O’Brany said that while “Meta continues to pour dollars into developing the metaverse, [the company’s] The strategy of promoting low-cost devices at the expense of profitability is not sustainable in the long term.”
a Similar concern was raised By technology industry analyst Ming-Chi Kuo late last month. Kuo expects Meta to take steps to cut back on investment in virtual reality, creating an opportunity for Apple and other competitors. He also wrote that Meta’s practice of selling VR headsets at a loss is unsustainable.
Currently, Meta holds 90 percent of the VR headset market, according to an IDC release. In second place by far is ByteDance’s Beko, with just 4.5 percent. Overall, VR headset shipments jumped 241.6 percent year-over-year in the first quarter of 2022. But the industry had significant supply issues in the first quarter of 2021, contributing to a “favourable comparison” to the first quarter of this year.
Like Kuo two weeks ago, IDC Director of Research Ramon Llamas said that “all eyes will be on Apple as it launches its first headphones next year”. Apple’s headset is expected to be significantly more expensive than Meta’s offerings, driving up the average unit price for the product category across the board, and Llamas believes Apple’s offering “will appeal primarily to a small audience of early adopters and Apple fans.”
In other words, don’t expect Apple’s first headphone to ship much more units than the Meta Oculus Quest 2 right out of the gate. It’s just the first step in a long-term plan to own the mixed reality market. As several reports have indicated over the past two years, this plan will eventually include low-cost augmented reality glasses and other products that will seek to expand the user base of mixed reality devices.
Apple and Meta aren’t the only companies working on mixed reality hardware products for the mass market. we reported in April Amazon has published several job listings soliciting candidates who can help the company build an “advanced” AR/VR product. And in December, we learned this from job listings Google plans To build a new augmented reality device and operating system.
“Travel aficionado. Infuriatingly humble reader. Incurable internet specialist.”