TrendForce, a market intelligence firm, predicts that Apple’s Vision Pro strategy of initially launching a premium professional product followed by a more budget-friendly consumer option will be successful in the long term.
Despite criticism regarding its high price, the device has managed to secure approximately 5% market share, setting a standard that competitors will need to meet moving forward.
Unique Positioning of Vision Pro
While not the most expensive VR/AR headset available, Vision Pro stands out for aiming beyond a niche audience.
For instance, the Varjo XR-3, which costs $6,500, is specifically designed for the high-end design market.
The Varjo XR-3 requires a connection to a powerful PC, targeting exclusively the business and government sectors seeking top performance and compatibility with established industrial design software. The company does not market the XR-3 to consumers.
In contrast, Vision Pro operates as a standalone device with a wider array of possible applications, giving it a unique market position.
Setting a New Standard for Specs
TrendForce states that Apple’s high-end displays have established a new benchmark that other premium products will need to reach.
The Vision Pro has successfully raised the bar for user expectations in VR/MR. It is the first in the industry to integrate OLEDoS display technology, creating a new standard for both product specifications and visual quality.
This has expanded the general understanding of what VR/AR headsets are capable of.
The introduction of the Apple Vision Pro repositions VR and MR devices, shifting the focus from solely consumer entertainment to a broader role as versatile productivity tools. This device is redefining use cases for VR/MR, including document editing and virtual meetings, as well as advanced applications in healthcare and education. This shift is expected to prompt other brands to reassess the functional capabilities of their VR/MR devices, thereby broadening their appeal in both consumer and enterprise markets.
Envisioning a Two-Tier Market
Apart from specialized devices like the XR-3, TrendForce suggests that Apple has effectively crafted a two-tier market with anticipated demand for both Pro and non-Pro models.
Apple is anticipated to unveil its next generation of VR/MR devices as soon as 2026, employing a strategy to offer two distinct models aimed at both premium and mainstream markets.
The high-end model is expected to continue utilizing OLEDoS display technology, delivering resolutions greater than 3,000 PPI for an exceptional visual experience. Apple might look into sourcing components from suppliers beyond Sony to cut down production costs, possibly including Chinese suppliers enhancing production capabilities.
For the mainstream model, Apple is likely to prioritize affordability and cost-effectiveness targeting price-sensitive customers. Display options for this model may consist of glass-based OLED displays and LCDs with LTPO backplane technology, both of which provide a balance of performance and cost. This dual-path strategy will enable Apple to effectively cater to both premium and mainstream market segments, solidifying its presence in the global VR and MR landscape.
We expect a considerable wait for a second-generation Vision Pro model, while a more affordable non-Pro version may not be available until 2028. Though this might be disappointing, Apple seems committed to a long-term strategy, having worked on the project since at least 2008.
Photo by yang miao on Unsplash
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