Apple’s New VR Headset Will Disappoint, but That’s OK
Apple is widely expected to announce its first VR headset at its Worldwide Developer Conference in Cupertino, which kicks off on June 5. The headset is Apple’s biggest new product introduction since the Apple Watch eight years ago, though it’s all but certain the device will not see anywhere close to the sales numbers Apple’s other wearables enjoyed post launch.
Many details of the device have leaked in recent months: It will likely be called Reality One or Reality Pro, run a customized version of iOS dubbed xrOS and come with a whopping $3,000 price tag. For that money, consumers will get a lightweight headset described as a bit like ski goggles. The device won’t require a computer or phone to run immersive apps, but it will rely on an external battery pack meant to be carried around in a pocket and connect via a short cable.
The headset will be equipped with outward-facing cameras capable of piping a live video feed of people’s surroundings into the headset, where this so-called pass-through video view can be combined with virtual elements — an approach known as mixed reality. Consumers will reportedly be able to switch back and forth quickly between a view of the real world and complete VR immersion via a physical dial or button.
It will reportedly run a number of first- and third-party virtual reality apps, including games, fitness and meditation apps, as well as the ability to watch movies, sports and other live events in VR. The device will likely offer access to existing iPad apps, including many of Apple’s own apps and services.
One of the most striking differentiators from existing VR gear, according to multiple reports, will be an outward-facing display to show the facial expression of the headset wearer to bystanders — a feature meant to make wearing the device less of an isolating experience. Another feature the company could highlight during the launch event is the ability to do Facetime calls with those using phones, tablets and computers.
Whether that’s enough to convince many Apple fans to open their wallets is doubtful. The high price tag and lack of focus could severely suppress sales, and the brand-new announcement of a comparably way more affordable Meta Quest headset coming this fall will further complicate the picture. Apple itself has lowered its own first-year sales expectations from 3 million to just 900,000 units, according to a recent Bloomberg report.
However, pundits may want to think twice before calling Apple’s entry into the VR market an outright mistake. For one thing, it’s a market that has seen a significant uptick as of late. Meta has sold around 20 million Quest 2 VR headsets since late 2020, and the Quest app store has surpassed $1.5 billion in app and game sales. Of the 500-plus titles on the Quest store, 40 have reeled in upwards of $10 million in sales, and breakout hits such as “Beat Saber” have generated nine-figure revenues.
It’s also worth remembering that many of Apple’s bestselling products initially started out slow. The aforementioned Apple Watch reportedly sold just 10 million units in its first year, far below the 40 million goal the company had set internally. Four years later, the Apple Watch is said to have outsold the entire Swiss watch industry.
Even the iPhone wasn’t exactly an overnight success. During the fiscal year the company introduced the original iPhone, it sold just 1.4 million units, and sales stayed below 12 million the following fiscal year. Now 15 years later, the iPhone has turned Apple into the world’s most valuable company, with a global estimated smartphone market share of 25%.
Whether Apple can repeat such a success story in the nascent VR market ultimately depends on the company’s ability to set itself apart from the competition, figure out a market need and zero in on that use case. All of that requires a multiyear journey with devices that get better and more affordable over time. Next week, Apple is merely poised to take its first step.
Janko Roettgers is the author of Lowpass, a weekly newsletter about the future of technology and entertainment. Previously a senior reporter for Variety and Protocol, he also contributes to Fast Company, The Verge and other outlets. On June 15, his special report “Getting Real About VR” publishes on Variety Intelligence Platform.
