Apple enters the MR market by unveiling Vision Pro

During the annual WWDC, Apple unveiled the long-awaited MR headset Vision Pro, as well as the Mac series powered by Apple Silicon. The MR device marks a new venture for Apple's foray into a new sphere since the launch of the Apple Watch.

Apple held the annual Worldwide Developers Conference (WWDC) on June 5, introducing the new Vision Pro headset, with a price tag of US$3,499. Apple announced it had partnered with Disney and Unity Software for the device's content.

Vision Pro is powered by 4K displays and infrared cameras and enables wearers to seamlessly blend digital content with the physical space. Apple said a wearer can navigate simply by using eyes, hands, and voice.

Vision Pro, which Apple said would usher in the era of spatial computing, has its VisionOS and dedicated App Store. The device will be available in the US first in 2024 before reaching other markets.

Meanwhile, Apple launched a larger MacBook Air and updated the Mac Studio and Mac Pro. The MacBook Air, which starts at US$1,299 and is powered by M2 chip, has a 15.3-inch screen, much larger than the 13-inch display for earlier versions.

Apple replaced Intel chips in earlier Mac Pro systems with its in-house chips M2 Ultra in the latest Mac Pro, slated to arrive next week, marking Apple's complete switch away from Intel. In addition, the Mac Studio comes in two versions, including the one powered by M2 Max with a 12-core CPU and up to 38-core GPU with the other powered by M2 Ultra with a 24-core CPU and up to 76-core GPU.

Vision Pro: more than high-end

Vision Pro is the latest product that Apple announced after Apple launched the Apple Watch in 2015, and Apple pits itself against Meta, which controls more than 80% of the VR headset market. Still, Meta's Quest V3, unveiled in early June and is expected to arrive in September, is priced at US$499, only one-seventh of Vision Pro.

Bloomberg Intelligence analysts Anurag Rana and Andrew Girard said in a research note that with a price tag of US$3,499, the strong consumer interest in the product might be dampened, making corporations the primary early adopters, adding that they expected about 500,000 units to be sold in the first 12 months.

Furthermore, Bloomberg analysts Mandeep Singh and Nishant Chintala said that due to the US$3,499 price, they expect Meta to keep its 80% market share in AR/VR device market, at least for the near term.

Despite smartphones, as well as PCs, showing a plateauing sign in most markets, Apple still relies on iPhones for about half of its revenue. According to Apple's financials, wearables and services still account for about 10% and 20% of its sales, respectively.

Source: Bloomberg, June 2023