Apple to sell less than 500K VR headsets in 2024, looking for 1 killer app that could bring new customers

3 months ago 24

Despite the Vision Pro being marketed as a groundbreaking “spatial computing” device, there are only around 2,000 apps available for it. This limited app ecosystem is seen as a major hurdle for the Vision Pro’s adoption read more

Apple to sell less than 500K VR headsets in 2024, looking for 1 killer app that could bring new customers

New content for the Vision Pro has been slow to arrive, with major developers like Google, Meta, Tencent, Amazon, and Netflix yet to bring their apps to the device. Image Credit: Apple

Apple is expected to sell fewer than 500,000 units of its Vision Pro VR headset in 2024. The company is searching for a “killer app” that could attract new customers to the $3,500 device, which has been struggling to gain traction due to its high price and limited app availability.

Despite the Vision Pro being marketed as a groundbreaking “spatial computing” device, there are only around 2,000 apps available for it, significantly fewer than the tens of thousands of apps available for the iPhone and iPad shortly after their launches. This limited app ecosystem is seen as a major hurdle for the Vision Pro’s adoption.

George Jijiashvili, an analyst at market tracker Omdia, noted that the Vision Pro’s launch has been slower than expected, with most developers focusing on platforms with larger user bases. Omdia predicts that Apple will sell 350,000 Vision Pros this year, with a projected increase to 750,000 next year and 1.7 million in 2026. These numbers are far below the nearly 20 million iPads sold in their first year.

Estimates from IDC, a tech market researcher, suggest Apple shipped fewer than 100,000 units of Vision Pro in the first quarter, less than half the number of Meta Quest headsets sold. Despite capturing more than 50 per cent of the VR headset market by dollar value due to its high price, the Vision Pro’s success hinges on the availability of compelling content.

New content for the Vision Pro has been slow to arrive, with major developers like Google, Meta, Tencent, Amazon, and Netflix yet to bring their apps to the device. Steve Lee, CEO of AmazeVR, reported an increase in downloads of his app following the Vision Pro’s launch in China, but the numbers were significantly lower than the initial US launch.

Bank of America equity analyst Wamsi Mohan pointed out that the Vision Pro has not yet captured the consumer imagination, leading to one of the slower starts for a new Apple product category. Apple’s management is emphasizing the Vision Pro’s potential in enterprise applications, with some developers betting on long-term returns from early investment in the platform.

Anthony Geffen, CEO of Atlantic Productions, believes the Vision Pro represents a significant milestone for VR, comparing its potential impact to that of the smartphone. However, for content production to be economically viable, the device needs to reach a wider audience, which may require a more affordable version in the future.

Developers like Tim Davison of CellWalk and Werner Jainek of Cultured Code see potential in Vision Pro and have already experienced positive returns from their apps. However, porting apps from other VR platforms to the Vision Pro can be challenging, as noted by Arturo Perez of Kluge Interactive, who had to adapt his game Synth Riders to the new hardware.

Despite the current challenges, Perez believes that Apple’s long-term commitment to the Vision Pro will eventually pay off, comparing the current stage of VR to the early days of the PC era. Apple’s ability to play the long game gives developers confidence in investing in the platform.

Read Entire Article