Apple to get first taste of consumer demand for US$3,499 Vision Pro

Published Fri, Jan 19, 2024 · 05:34 PM

APPLE’S long-awaited Vision Pro mixed-reality headset will finally be available for pre-orders on Friday (Jan 19), giving the company its first real taste of consumer demand for the US$3,499 device. 

The product goes on sale at 8 am EST (9 pm SGT) via Apple’s website and mobile app – ahead of the Vision Pro getting delivered to stores and consumers on Feb 2. The purchasing process will be unique. Customers will need to use a recent iPhone or iPad to scan their head and, if necessary, provide a vision prescription.

Though Apple typically does not comment on the sales performance of new products, the pre-order process could provide some hints. If shoppers are quoted delivery times well beyond Feb 2, it may suggest that either demand is strong or supplies are limited – or something in between.

Wall Street analysts are predicting a slow start for the device. UBS Group analyst David Vogt expects Apple to ship 300,000 to 400,000 units this year, generating as much as US$1.4 billion. For a company that had sales of US$383 billion last year, that is “immaterial”.

Still, the idea is to set the stage for something bigger. Apple is entering its first major new product category since the company began selling smartwatches in 2015, and the Vision Pro may take years to catch on. Apple will continue to refine the headset – making it cheaper and more comfortable – and find compelling applications for the device.

In the longer run, Apple could use a fresh moneymaker. The smartphone market has matured, and it is under particular pressure in China. The company’s revenue has fallen for four straight quarters – its longest streak of declines in more than two decades.

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Initially, the Cupertino, California-based company only plans to sell the Vision Pro in the US, with launches in other markets coming in the months ahead. The company is eyeing the UK, Canada and China as some of the first other countries, Bloomberg News has reported.

It is a complex product to manufacture, which could limit early supplies. The dual 4K resolution displays in the headset, which melds virtual and augmented reality, have suffered production snags. But the fact that Apple has been ramping up manufacturing for months suggests that it will be able to satisfy initial demand. The company is also offering a 25 per cent discount on the device for employees, signalling that supplies are not too tight.

Inside Apple, executives are anticipating a strong opening weekend, with sales tapering off later. At US$3,499, the Vision Pro is one of the priciest consumer headsets ever – about seven times more expensive than the latest device from VR market leader Meta Platforms.

The Vision Pro will also be a hard product to share with family and friends. It requires a precise fitting process to ensure a good experience. The face scan is designed to determine the best light seal and strap size for users. The company has prepared 25 different light seals – a cushion that prevents light from seeping into the wearer’s field of view – in addition to two straps. There also are prescription lens inserts, at an additional cost.

And the headset may be hard for some people to wear for extended periods. In early testing, some users have found it to be too heavy.

Another concern that has cropped up in recent days is a lack of support from top streaming apps. Netflix, Spotify Technology and Google’s YouTube are opting not to release software for the device, at least at launch.

But Apple has carefully refined its sales pitch for the headset. When consumers try it out at Apple retail stores, they will get a 25-minute demo, letting them get comfortable with the 3D experience that the company calls “spatial computing”.

To commemorate the launch, Apple executives Mike Rockwell and Alan Dye discussed the device in a Q&A shared with employees this week.

A key focus, said Dye, was ensuring that the Vision Pro did not have a closed-in feel – a complaint with VR headsets.

“From the onset, we all had concerns about people sitting with their eyes covered and disconnected from the world,” he said. “It really became central to how we thought about the core principles of the product.”

That led to the EyeSight system, which can show a wearer’s eyes through a screen on the front of the Vision Pro. “It was a huge technical challenge to do this in a way that looks and feels natural,” Rockwell said.

Apple also developed an interface that does not require handheld accessories. Instead, it tracks eye movement and hand gestures. Users control the device by looking at an on-screen item and pinching their fingers together to select it.

One of the biggest selling points may be how easy it makes collaboration, Rockwell said. Users in far-flung locations can feel like they are in the same place.

“It’s the closest thing to being there in person that you can possibly have,” Rockwell said. “It changes the way you collaborate and is very different from videoconferencing as we know it.” BLOOMBERG

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