Few other companies have been synonymous with consumer electronics innovation and quality more than Apple. Even giants can stumble. Apple recently released the third-generation version of its mixed-reality device, the APPLE Vision Pro. While sales are said to be down some 25 per cent from what the company had hoped and expected, my purpose here is not to detail what the investment gurus have to say about sales. Here I want to examine the winds of success and failure through which Apple has been blowing. In particular, I want to examine the sudden drop in sales. And, at the end, I want to speculate what lies ahead for this market-blazing device.
The day Apple launched the Vision Pro is a milestone event for the mixed reality market. Before then, the mixed reality landscape was a little hollow. Sure, there were sprinters, like the Microsoft HoloLens, but few others, at least until then. The APPLE Vision Pro is notable not only for its brand but because the big mega-corporations in their therapist chairs agree mixed reality is the next big thing, and Apple represents a real step toward making other people think so too. Sales more or less seemed to bear that out. Pre-orders for the Vision Pro sold out quickly, a bit unsurprisingly because it retails for $3,500.
But despite the hype surrounding its release, sales have fallen precipitously, a development that has left analysts and customers scratching their heads. The expert Apple analyst Ming-Chi Kuo reports that the company slashed its sales projection by almost half. Tech purchases generally are being affected by economic uncertainty, with consumers shifting spending toward necessities rather than luxury goods and experiences.
There are several factors that contribute to the observed decline in APPLE Vision Pro sales. For instance, Apple has chosen to limit the availability of the Vision Pro in the US market, limiting its potential for global sales and preventing the company from seizing virgin markets abroad. Secondly, although the APPLE Vision Pro is revolutionary, it is quite bulky and heavy, which makes it unlikely that people will take it everywhere. The unease users show about making the device a part of their daily lives can be reflected in the low number of apps for the device, which further decreases the interest in the product.
Also, Apple seems to position its Vision Pro more on the enterprise/high-end market than on the consumer market, which means that the Vision Pros immediate market is low. Is it all doom and gloom for the Vision Pro? Not necessarily.
The mixed reality market is growing fast so there’s every possibility that it will become an industry of significant scale. And while established sales figures might disappoint, the truism that Analogue’s performance was due to early adoption precedes even Apple itself. Market growth coupled with possible global expansion and rumours of a cheaper model make it possible that Apple could enter a wider market and, with a little fortuitous timing, generate the turnaround it needs.
There’s no disputing their record of innovation; Apple invented not just the smartphone category but an almost whole new dystopian reality with the iPhone, and set a new standard for mobile design with the MacBook. For the company to now step into mixed reality with the upcoming Vision Pro once again keeps Apple at the forefront of innovation experiments that are unlocking new tech and design possibilities. With a focus on form that matches function, Apple’s investment in refining MR technology represents a significant vote of confidence in the future of spatial computing. When this intersection of technology and culture eventually reaches a critical inflection point ‘when the proofs are clear and sufficient numbers of people have accepted them, that’s when the change catalyses’ According to Jones, Apple isn’t the only company in the industry working towards a future of mixed reality. Jones himself spent much of 2021 raising a large Series B funding round for his startup Accelus, which sells property hardware to enable telepresence communication with real people. They were sold out of the device until later 2023. Apple, in fact, wasn’t originally on Jones’s primary list of businesses to court as a potential buyer or partner.
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Apple Vision Pro’s poor sales are a real setback, but it’s far from bringing about the death of the device, or of Apple in MR. Given the company’s track record of overcoming initial market barriers, and given the still-increasing size of the potential market for MR, it’s very likely that Apple will continue to adapt and find creative ways to exceed its vision. This informs the story of the Apple Vision Pro, and it’s still only early days within the wider story of Apple’s innovation.
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