Apple’s Vision Pro VR Headset Is Now Available in Stores: Can It Beat Meta’s Quest?

KEY TAKEAWAYS

• On Friday, Apple Inc. unveiled its version of an augmented reality (AR) headset, the Apple Vision Pro.
• The new product is designed to compete directly with Meta Platforms Inc.’s virtual reality (VR) headset, but the Apple Vision Pro is seven times more expensive than Meta’s Quest 3 headset.
• Analysts predicted that the Vision Pro’s exorbitant price would be affordable mostly to companies rather than ordinary consumers.
• Although the VR market has stagnated over the last year, observers remain optimistic about Apple’s Vision Pro.

Apple Inc. (AAPL) entered the augmented reality (AR) market on Friday with the debut of the Apple Vision Pro headset, putting it in direct competition with Meta Platforms Inc.

Apple’s headset overlays applications on the user’s surroundings using 12 cameras, six microphones, and five sensors, and it is totally controlled by hands, eyes, and voice commands.

The AR computing experience runs on the new visionOS operating system and is compatible with over a million apps from the company’s app store. Apple’s debut into virtual reality (VR), priced at $3,499, is much more expensive than competitor Meta’s (META) Quest 3 headset, which starts around $500 and employs controllers.

According to International Data Corp. analysts, the “high price tag of the Vision Pro will likely relegate the device to businesses.”

 Analysts at Deutsche Bank Research were more bullish, noting that “while the high price may slow initial adoption, the Vision Pro launch expands Apple’s ecosystem and diversifies revenue streams beyond the iPhone over time.”

Apple has also introduced a new Spatial Video format that can be recorded with the Vision Pro and iPhone 15 Pro devices. It enables users to “relive their favorite memories.” Meta announced Thursday that the Quest 3 will be compatible with Spatial Video.

Although the VR market has stagnated over the last year, analysts remain optimistic about the Vision Pro. Wedbush Securities analysts forecast sales of more over 600,000 units this year, much beyond the 460,000 initially predicted.