Apple may sell fewer than 100,000 units of its upcoming mixed reality headset this year, according to a new report from TrendForce.
The market research firm reports weaker than expected sales of high-end AR and VR devices. They now forecast a global downturn in AR and VR device shipments for 2023, predicting a shipment total of roughly 7.45 million units—an 18.2% YoY decrease. Most of the decline is due to VR devices with shipments estimated at 6.67 million units. Shipments of AR devices are expected to remain stable, with projections at 780,000 units.
TrendForce says that Apple's new headset could stimulate some demand but it's high price will pose a significant barrier to market growth.
Although Apple is projected to launch a new product in 2023, this release is primarily targeted at developers, signifying an accompanying escalation in specifications, features, and, most importantly, cost. This factor, coupled with anticipated production hurdles, is likely to restrict sales predominantly to pre-orders for this year. Shipment estimates are projected to fall short of 100,000 units, with total production potentially capped at 300,000 units.
The firm believes that the market for VR and AR devices will be limited between 2023 and 2025 with a significant annual increase in shipments not likely until 2025.
While affordable VR devices could pique the interest of mainstream consumers, the prospect of minimal profitability might dissuade manufacturers from substantial investment in the VR market in the immediate future. A shift towards AR devices and their corresponding applications seems more probable. Nevertheless, the expansion of the AR device market hinges on a broader acceptance of consumer applications. Therefore, TrendForce anticipates that a significant rise in the VR and AR market, potentially nearing a 40% annual increase in shipments, might not be realized until 2025.
More details in the full report linked below...
Read More
The market research firm reports weaker than expected sales of high-end AR and VR devices. They now forecast a global downturn in AR and VR device shipments for 2023, predicting a shipment total of roughly 7.45 million units—an 18.2% YoY decrease. Most of the decline is due to VR devices with shipments estimated at 6.67 million units. Shipments of AR devices are expected to remain stable, with projections at 780,000 units.
TrendForce says that Apple's new headset could stimulate some demand but it's high price will pose a significant barrier to market growth.
Although Apple is projected to launch a new product in 2023, this release is primarily targeted at developers, signifying an accompanying escalation in specifications, features, and, most importantly, cost. This factor, coupled with anticipated production hurdles, is likely to restrict sales predominantly to pre-orders for this year. Shipment estimates are projected to fall short of 100,000 units, with total production potentially capped at 300,000 units.
The firm believes that the market for VR and AR devices will be limited between 2023 and 2025 with a significant annual increase in shipments not likely until 2025.
While affordable VR devices could pique the interest of mainstream consumers, the prospect of minimal profitability might dissuade manufacturers from substantial investment in the VR market in the immediate future. A shift towards AR devices and their corresponding applications seems more probable. Nevertheless, the expansion of the AR device market hinges on a broader acceptance of consumer applications. Therefore, TrendForce anticipates that a significant rise in the VR and AR market, potentially nearing a 40% annual increase in shipments, might not be realized until 2025.
More details in the full report linked below...
Read More