Apple's (AAPL +2.65%) highly anticipated headset is finally here. The tech giant unveiled the Vision Pro at its World Wide Developers Conference earlier this month. It was the company's first major product release since it launched the Apple Watch in 2015, and may be its most ambitious product since the iPhone.
The mixed-reality headset allows users to either be immersed in virtual reality (VR) or to engage in augmented reality (AR), meaning they can see the real world around them, but annotated with digital features. But priced at $3,500, it certainly isn't cheap.
Apple has chosen to tackle this new market using a strategy known in the business world as skimming -- putting a high initial price on a product and attempting to sell it first to early adopters who are willing to pay up for the new technology, then gradually lowering the price to attract additional slices of the market as the technology evolves and the company introduces new models.
That's a notable distinction from how Meta Platforms (META +1.81%) is approaching the market. Its upcoming Quest 3 VR headset will cost just $499, making it more of a mass-market device rather than a premium headset.
At first glance, the most noticeable innovation of the Vision Pro is that the goggles have a mode that feels transparent, allowing the wearer to make eye contact with other people, a distinct advantage over the Meta Quest.
Image source: Getty Images.
What does it mean for the metaverse?
Apple's presentation didn't come with a splashy vision for the metaverse such as Meta CEO Mark Zuckerberg has tried to present. Apple also avoided using the terms AR and VR in its presentation, though the Vision Pro offers both of those experiences. Instead, CEO Tim Cook characterized the device as a spatial computer.
While Meta has tried to sell its vision of the metaverse based on its Horizon Worlds software and cartoonish avatars, Apple presented more ordinary use cases for the Vision Pro, seemingly content to let developers do the work of building out the software side.
It appears the device will more likely be used for practical applications such as entertainment and productivity, at least initially. Gaming may be the most obvious application for the mixed reality device. Video entertainment is also likely to be engaging viewed on a headset like the Vision Pro.
However, productivity might be the greater use case here, and that could also better drive sales of the expensive device. For instance, taking a Zoom call on a Vision Pro could prove a better experience than doing it on your computer, especially with the added features it enables.
Better yet, the Vision Pro could be especially useful for professional tasks that require looking at 3D images, such as architectural models or human bodies undergoing surgery. Apple didn't offer a full-throated vision for these use cases, however. It's leaving the next steps to the developers who will create apps for the Vision Pro.
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An alternative to the metaverse
Meta CEO Mark Zuckerberg has been direct with investors about his vision for the metaverse and his belief that an "embodied internet" will become the next major computing platform. Apple, on the other hand, has been keeping its plans close to the vest. Though rumors had swirled about the headset, the company didn't reveal its plans until the WWDC conference this month.
Based on what was said at the device's launch, it seems that Apple doesn't necessarily see the headset as primarily being a portal to any version of the metaverse. Rather, it sees it as a device that enables a new form of computing that people can use in whatever way they wish.
Compared to Meta, Apple's entry into the headset market feels like the winner here. While the price difference means the two products aren't necessarily direct competitors, the lackluster results so far from Meta's efforts to build a metaverse (and create a market for its Quest devices) have already disappointed investors.
Apple, on the other hand, has a pedigree in tech hardware, and is not pushing a vision for a digital world that most people don't seem to want. It's unclear if Vision Pro will be a success, but at this price, it doesn't have to be a huge seller. It just has to create buzz and build interest for future, more mass-market headsets, and Apple has a long track record of doing just that.
