Apple’s new Vision Pro mixed reality headset has generated a significant amount of buzz. Announcing it at this year’s , chief executive the virtual and augmented reality headset will “see, hear and interact with digital content just like it’s in your physical space […] seamlessly blending the real and virtual worlds”.
The Vision Pro is the first new product category Apple has introduced since the Apple Watch in 2014. It marks the company’s foray into . , and have been quick to react – and not all positively.
On one hand, the headset has been its . It’s less clunky than competitors’ offerings and has a range of advanced capabilities, including hand and eye tracking, and the seamless combination of .
However, others can’t help but point out the hefty price tag of US$3,500 – and the fact that the general public has mixed reality headsets.
Globally, the demand for these headsets has been slowing. Fewer than were shipped in 2022 (mostly by , Apple’s biggest competitor in this category).
Meta sees spatial computing as a big part of the tech future, despite calling for the to be abandoned. Last week it released the Quest 3 at a relatively low cost of US$499. With continued heavy spending on the metaverse, developers of Quest 3 Reality Labs recorded an operating loss of in the first quarter of 2023.
So if there is no demand, who is Apple targeting?
While Meta’s recent history might seem like a cautionary tale, timing and strategy are critical when it comes to technological innovation. And compared to Meta, Apple’s strategy seems prudent.
Apple is likely betting the app developer community will provide it with the it needs to turn the Vision Pro (and subsequent iterations) into its next big income generator – and perhaps change how we interact with this technology forever.
Getting developers to build exciting complementary offerings, such as apps and device add-ons, would give Apple a springboard to convince users of the Vision Pro’s . But this won’t work without developers’ buy-in, which leads us to believe the Vision Pro is (at least for now) aimed at Apple’s registered , rather than the broader user market.
It’s expected many of the apps on the App Store will work on , the Vision Pro’s operating system, by the time the product is launched. Apple is already with programs and tools to redesign apps for compatibility with the Vision Pro, and create new ones.
Users are attracted to a product that provides more app variety, and their migration to it further piques developers’ interest. Typically, this becomes a self-reinforcing cycle. Such a multiplication of value for consumers, coupled with Apple’s manufacturing capabilities, could allow the Vision Pro to rise to dominance.
And this isn’t just speculation; Apple has used this approach before.
Leveraging an app-driven ecosystem
Apple has a history of leveraging its app-driven to give its products the upper hand. One early example of this was the iPod and iTunes, wherein the Apple Music store, cloud connectivity and massive storage capacity (at the time) created an environment that locked users in.
More importantly, with the sophistication of the hardware and software, the ease of use and the novelty of the experience, users were happy to be locked in.
This approach has been repeated time and again with other Apple products, such as the . Once more, Apple drove innovation by linking the hardware to other devices and systems, introducing unique features and providing high-quality apps to generate interest.
Competition heats up
Ultimately, users will judge the value of the Vision Pro through a combination of objective and subjective information. According to initial reviews, the Vision Pro operates well, and Apple is using branding and marketing tactics to further create a perception of value.
All things considered, Apple’s entry into the mixed reality market represents a big threat to competitors. It has a track record of building hardware at scale and with progressively affordable prices. And let’s not forget its base of some two billion active devices to which the Vision Pro can link.
Apple’s massive ecosystem – built on devices, apps, developers and manufacturing partners – won’t be running dry anytime soon. And by the very fact of its existence, the Vision Pro has a shot at success.