Innovation often intersects with affordability! In the dynamic realm of technology to shape the trajectory of industry giants. Apple, the world’s most valuable brand and iPhone maker, has found itself at a pivotal juncture as it navigates the evolving landscape of Augmented Reality (AR).
The tech giant is poised to redefine the AR landscape and solidify its position as an industry leader with the impending launch of a more affordable version of the Apple Vision Pro.
The genesis of this strategic move can be traced back to the underwhelming response received from customers and industry analysts for the Apple Vision Pro, the AR headset launched with a hefty price tag of US$3,500. The lukewarm response, however, sent shockwaves through the tech community, prompting Apple to reassess its pricing strategy of Vision Pro, and chart a new course forward.
Recognizing the need for greater accessibility and broader market appeal, Apple quickly pivots its approach and sets its sights on developing a more affordable alternative to overpriced Vision Pro.
The reports from The Elec, supported by leaker Revegnus, indicate that Apple is actively working to slash the cost of its Vision Pro device by more than 60%. This can’t be achieved without reimagining the most expensive component of the device – two 4K micro-OLED displays. These cutting-edge displays – although extremely impressive in terms of quality produced—contribute significantly to the device’s exorbitant price.
A closer look at the BOM (Bill of Materials) of Apple Vision Pro reveals that displays add $456 per unit to the overall cost of Apple Vision Pro. Identifying this as a major reason behind the exorbitant price of the device, Apple has prioritised to ‘refocus’ on it to make the device more affordable. Reports suggest that the company has set a target to reduce the price of these components by as much as 50%.
Apple’s quest to develop a more affordable Apple Vision Pro device would result in a significant shift of strategies, from targeting only premium-segment customers to launching more affordable products in the market. The Cupertino giant is aiming to capture a sizeable chunk of the growing AR market by offering a scaled-down version of Apple Vision Pro that offers the core functionalities people expect and use the most.
The far-reaching impacts of this strategic pivot have been, apparently, visualised by Apple. With a more affordable Apple Vision device available in the market, the company stands poised to democratise Augmented Reality and empower users to experience its transformative benefits firsthand. By lowering the price barrier, Apple has a wider reach of prospective buyers, including students, professionals, and early adopters who distanced themselves from the Apple Vision Pro due to its exorbitant price.
Moreover, by making a more affordable version of Vision Pro, the company is expected to emerge as the catalyst of an expansive AR ecosystem. Content Creators, Developers, and Businesses will jump on it as the adoption rates soar and there is a surge in demand. All would be eager to experience and capitalise on its potential. The excitement and adoption will lead to an abundance of AR-enabled apps, games and experiences, further strengthening the market presence of Apple Vision Pro devices and enhancing the value proposition of the Apple Vision ecosystem.
In conclusion, the cheaper Apple Vision Pro helps Apple to have a strategic pivot, which has the potential to redefine the landscape of augmented reality and unlock new growth opportunities. By prioritising accessibility, affordability and democratization, Apple is all set to revolutionize the way we have been interacting with technology and the digital world.
