Apple’s recent challenges with its high-end Vision Pro mixed reality (MR) headset have opened the door for Meta to gain a competitive advantage in the VR and MR market. Despite initial excitement surrounding Apple’s Vision Pro, which debuted in early 2024 with a premium price tag of $3,500, reports indicate that Apple is now struggling with excess inventory and declining sales. Production has reportedly slowed to fewer than 1,000 units daily, and sources close to the supply chain suggest that Apple may halt production altogether by year-end, shifting focus to a more affordable MR model in 2025.
Vision Pro vs. Meta Quest 3: A Price War
The Vision Pro was initially positioned as Apple’s foray into high-quality mixed reality, with features like spatial computing for workspaces and immersive experiences. However, at $3,500, the Vision Pro is priced considerably higher than Meta’s Quest 3, which retails at $500, and the Quest Pro at $1,000. Meta’s competitive pricing strategy seems to have resonated with consumers, making its devices accessible for everyday users. In contrast, Apple’s Vision Pro struggled to gain traction due to its steep price point, which limited its appeal to a niche luxury market rather than the mainstream consumer base.
This price discrepancy has allowed Meta to capture the interest of a broader audience, particularly as VR adoption becomes more widespread in gaming, social engagement, and workplace productivity. Meta’s Quest 3, equipped with competitive mixed reality features at a fraction of the Vision Pro’s cost, has garnered positive reception and helped solidify Meta’s early lead in the market.
Apple’s Strategic Shift: An Affordable Vision Pro Model
Reports indicate that Apple has acknowledged its high-end strategy’s limitations and is now working on a lower-cost Vision Pro model, potentially priced around $2,000. This new model would omit certain premium features, such as EyeSight (Apple’s augmented display technology for enhanced immersive experiences) and likely utilize downgraded displays. Apple aims to release this alternative by late 2025, targeting a wider market segment and attempting to regain footing against Meta’s budget-friendly devices .
Luxshare, Apple’s primary assembler for the Vision Pro, has already accumulated around 200,000 units in inventory due to slow sales. The surplus highlights the challenges Apple faces with its luxury-focused approach and the need to rapidly adjust its strategy to meet changing market dynamics. Meta’s consistent consumer focus and diverse pricing options may pressure Apple to further refine its offerings and explore cost-effective solutions.
Apple’s Continued Partnership with Chinese Suppliers and Southeast Asia Expansion
Despite scaling back Vision Pro production, Apple remains committed to its Chinese suppliers, including Luxshare, Lens Technology, and Goertek, which play a crucial role in Apple’s manufacturing strategy. To diversify its supply chain, Apple has also expanded production capabilities into Southeast Asia, especially Thailand, to mitigate geopolitical risks and increase operational resilience. By leveraging partnerships in China and Southeast Asia, Apple aims to maintain flexibility and agility as it pivots toward more cost-effective models.
Meta’s Momentum in the Mixed Reality Landscape
While Apple’s high-end Vision Pro encounters production hurdles, Meta continues to build momentum in the VR/MR landscape. Meta’s approach to providing accessible, high-performance headsets at various price points has given it an edge in capturing a broad consumer base. The Quest 3, Quest Pro, and other Meta devices appeal to both budget-conscious consumers and VR enthusiasts, establishing Meta as a strong competitor.
With Apple now pivoting to accommodate consumer preferences for affordability, the initial round in the VR/MR market battle seems to favor Meta. However, Apple’s commitment to adjusting its strategy and the development of a mid-range model show it is not ready to cede ground just yet.
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