Can Apple Revive the Struggling Mixed Reality Market With Vision Pro?
New reports indicate that the demand for mixed reality (XR) headsets has dropped by over 30 percent in the first quarter of 2023. This decline can be attributed to consumers’ lack of interest in the segment, which is primarily due to the absence of innovative technology and new products.
Meta is the only competitor at the top of its Quest line, but others will likely make their mark in the coming years. Meta’s share is about 49 percent and Sony’s share is 32 percent. The likes of Pico, DPVR and HTC cover the rest with 7%, 6% and 1% respectively.
Pricing is the biggest pain point in the segment, which explains why Meta has found enough users with its relatively affordable Quest headphones. Apple certainly has its hands full trying to get people to drop $3,499 on its premium XR headphones, but industry experts believe that Apple has the technology and the power to push the industry and get more partners involved in product development for the future.
Mixed reality includes both virtual and augmented reality, both of which have been around for years. Google has been very interested in these ecosystems, but the company has quickly realized that the market is niche and has limited use cases to bring them to market.
Predictions for the future of the XR headphone market are promising, but a lot of dynamics need to change to make those hopes come true. Apple has made the industry sit up and take notice, and it’s clear that the Vision Pro headset got everyone thinking, even though Meta says the product isn’t bothering them. The growth of the market depends not only on the technology, but also on ensuring that the products are available to the buyer, otherwise it will be difficult to see the segment surpassing the niche market.
