In response to Apple's anticipated release of the high-priced augmented reality (AR) headset, ‘Vision Pro', Meta has strategically partnered with LG Electronics, reports Korean outlet Maekyung. This collaboration aims to introduce a device capable of rivaling Apple's offering. An IT industry insider stated on the 3rd, “Meta has unified its brand as ‘Quest' since 2020 and named its high-end products as ‘Pro'. The product being developed with LG Electronics is also expected to be named ‘Pro'.“
A Competitor for Apple´s Vision Pro?
Meta has been keenly focusing on the metaverse market, even changing its name from Facebook to Meta. However, the landscape shifted when Apple announced its intention to release a high-end AR device priced at $3,499, known as the Apple Vision Pro. To counter this, Meta has joined forces with hardware giant LG Electronics.
Meta already attempted to pre-empt Apple's push into the market, launching the Meta Quest 3 in June. The joint venture aims to introduce a device that can compete head-to-head with Apple's offering. The product, speculated to be named ‘Meta Quest 4 Pro', signifies a high-end specification.
By collaborating with LG, Meta aims to challenge Apple's ‘Vision Pro', while LG sees this as an opportunity to deeply penetrate the metaverse market. Once production is finalized, various components from LG Group affiliates are anticipated to be incorporated. LG Electronics will oversee mass production, with LG Display, LG Innotek, and LG Energy Solution supplying parts.
Apart from Meta and LG, other tech giants like Apple, Samsung, and Google are also gearing up to enter the high-priced AR and virtual reality (VR) headset market, creating a tripartite competition. Samsung announced a collaboration with Google and Qualcomm for the development of a next-generation extended reality (XR) headset. Although, that device has now reportedly been delayed over doubts over being able to compete with the Vision Pro.
Apple, in its annual WWDC event, declared the release of its high-priced headset next year. CEO Tim Cook emphasized the dawn of the “spatial computing era”. The Vision Pro is equipped with five sensors, 12 cameras, and a dedicated chip developed by Apple. Following Apple's announcement, Samsung and Google adjusted their release schedules and shifted their development strategy towards high-end products.
Market Growth and Projections
According to PresidensResearch, the AR and VR headset market is projected to grow from $6.78 billion last year to $16.9 billion by 2025. Currently, low-priced products are dominated by Chinese manufacturers, while big tech companies are entering the high-end segment. Sony, leveraging its PlayStation console, is targeting the mid-price range. The company recently launched the ‘PlayStation VR2' priced at approximately $549, challenging Meta's dominance. CounterpointResearch reports that Meta's market share in the AR and VR segment dropped from 77% in Q1 2022 to 49% in Q1 this year. In contrast, Sony captured a significant 32% market share in Q1.
This joint development allows Meta to easily secure technological prowess, while LG Electronics establishes a foundation for new growth. LG Electronics' President Jo Joo-wan previously emphasized, “We will connect and expand customer experiences in all spaces where customers live, from home appliances to homes, commercial spaces, vehicles, and even the virtual space of the metaverse.” He also highlighted ongoing reviews of business possibilities related to the metaverse with several partners.