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Apple may only be making 400,000 Vision Pro headsets
The Immersive Wire - 10 July 2023 (Monday Briefing)
Tom Ffiske
July 10, 2023
Executive summary
Welcome to your weekly briefing on the metaverse. Here are your snippets to sound smarter in meetings this week:
Headline: Apple may only be making 130,000 to 400,000 Vision Pro headsets (analysis below).
Article: As subscription models are so lucrative, why do VR companies not adopt them more?
Conversation-starter: The metaverse does not need legislation quite yet, according to EU antitrust chief Margrethe Vestager.
Stat of the week: 86% of brands see the global network of virtual worlds as an opportunity to reach audiences, according to InStreamly.
Other stories: The EU Commission will set out its vision on the metaverse next week, Major League Baseball unveiled a virtual park this weekend, and NASA is using VR to help visualise data (more below).
Off to America 🦅
Analysis
Apple may only be making 400,000 Vision Pro headsets (or even lower), according to the Financial Times.
The reason comes down to the complexity of the devices across the supply chain, according to sources from suppliers. The projections vary, but they are below the estimate of 1m from an internal sales target.
Analysis from Bloomberg Intelligence: “The news of Apple slashing production of its mixed-reality headset to around 400,00 units isn't surprising, as it's a first-generation product. Our original thesis called for only 500,000 units in the first year (half Apple's original expectation) given the headset's $3,500 price tag. We don't expect the product to have a significant financial impact for the next three years.” - Anurag Rana, Senior Technology Analyst
If true, it shows the complexity of the headset. Perhaps in the first year sales will grow, as Apple and affiliate companies work out how to make the process smoother and easier. We may then see more headsets move in the years after. But for now, it gives me PS5 vibes that a fair number of people will want to buy a limited number of headsets. That is, unless these supply issues are resolved ahead of 2024.
But be careful with the stats. Benedict Evans notes that supply-side leaks can be tenuous, so the actual statistic may be lower than that.
Other notable stories
Got any stories? Let me know at tom (at) immersivewire (dot) com.
EU Commission will set out its vision on the metaverse next week.
Kidderminster Hospital will use VR headsets in wards.
Major League Baseball unveiled a virtual park this weekend.
Max uses AR to promote season 3 of Warrior.
NASA is using VR to help visualise data.
Open Metaverse Alliance for Web3 (OMA3) announced the Inter-World Portaling System (IWPS), which promises to bridge disparate platforms.
St James’ Palace will use VR to help advisors with vulnerable clients.
UK government invested in Red6, which specialises in AR technologies for fighter jets.
Student profile
Tianyuan Zhang is a creative technology student who studied MA Virtual and Augmented Reality at Goldsmiths. Tianyuan made AR Dance, a body and music program where everything is moving with the participant and everyone is a musician. Tianyuan specialises in wearable, Mocap, VFX, VR/ AR, interactive AI, and is passionate about ‘interactive without thinking.’ If you would like to speak to Tianyuan, reach out here.
Help corner
Need some assistance from other readers? Let me know at tom (at) immersivewire (dot) com.
PartySpace, a metaverse events platform, is seeking a strategic acquirer for its business, brand and technology. Run by Yurii Filipchuk, the browser-based product uniquely blends traditional video and 3D objects to create immersive experiences. If you are interested or want to have a conversation, send him a DM.
Metaverse Monday is another weekly newsletter that teaches you about the AR/VR industry by interviewing the founders, investors and developers building it. Join readers from Google, a16z and Nvidia - Check it out here.