One recent media release 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 run if its strategy doesn’t change.
The media release provides an overview of the virtual reality hardware market. In the release, IDC’s director of research, Jitesh Ubrani, said that, while “Meta continues to pour dollars into the development of the metaverse, [the company’s] low cost hardware advertising strategy with unsustainable profit in the long run. ”
One Similar concerns have been raised by technology industry analyst Ming-Chi Kuo late last month. Kuo predicts that Meta will move to scale down its investment in virtual reality, creating opportunities for Apple and other competitors. He also wrote that Meta’s sales of VR headsets are unsustainable.
Currently, Meta owns 90% of the VR headset market, according to an IDC release. Coming in second is ByteDance’s Pico, at just 4.5%. Overall, VR headset shipments grew 241.6 percent year-on-year in the first quarter of 2022. But the industry faced significant supply issues in the first quarter of the year. 2021, contributing to “a favorable comparison” for the first quarter of this year.
Like Kuo a few weeks ago, IDC’s director of research, Ramon Llamas, said that “all eyes will be on Apple when it launches its first headset next year.” Apple’s headphones are expected to be much more expensive than Meta’s products, driving up average unit prices across product categories, and Llamas believes Apple’s product “will appeal primarily to a limited number of consumers.” small early adopters and Apple fans.”
In other words, don’t expect Apple’s first headset to ship in more units than Meta’s Oculus Quest 2 right out of the box. It’s just the first step in a long-term plan to own the mixed reality market. As several reports over the past few years have noted, that plan will eventually involve cheap AR glasses and other products that will seek to expand the user base for mixed reality hardware.
Apple and Meta aren’t the only companies working on mass-market mixed reality hardware products. we Report in April that Amazon has posted several job listings to attract applicants who can help the company build an “advanced” AR/VR product. And in December, we learned from the job listing that Google’s plan to build a new augmented reality device and operating system.