Meta Scraps a Premium Headset Production That May Take on Vision Pro in the Market

Nitin Konde, Apoorva Bajj

Sep 3, 2024 — 2 min read

Meta Scraps a Premium Headset Production That May Take on Vision Pro in the Market

Rumors circulated recently that Meta was planning to shelve a high-end mixed-reality headgear that was supposed to ship in 2027, according to The Information, an American technology industry–focused business publication.

The headset was supposed to be Meta's response to Apple's Vision Pro, thus the fact that the company scrapped the idea says a lot about its position in the competition with Apple.

Cost Being the Big Factor

Reportedly, the reason behind such a move is the cost. Sticking with a price point below $1,000 for the new headset was a goal of Meta, which is no small task when trying to compete with the $3,500 Vision Pro. So, maybe it shouldn't come as a surprise that the project was canceled.

The Quest 2 and Quest 3, two of Meta's current low-cost headsets, are priced at $500 or less. This shifts the hardware focus to those models. That is far lower than the initial cost of a Vision Pro. The market for reasonably priced headsets is now dominated by Meta. Reports indicate that Apple plans to release a cheaper Vision headset next year, although it will still be unable to compete with Meta's affordable options. Meta is probably preparing to become the budget mixed reality market leader.

What Kind of Headset Market Is Meta Banking On?

To attract the sizable demographic that cannot purchase a Vision Pro, Meta should direct its hardware development efforts toward producing affordable headsets. But this approach could backfire in the long run if Meta headsets get a bad rap for being "cheap" or of poor quality.

The possible effect on the headset market in the future makes this significant. One such example is the present state of the smartphone market. There is a common belief that Android phones are not as high-end as iPhones, even though both platforms can cost more than $1,000 and provide comparable features. While others may not give a hoot about how others see them, for other communities, the social ramifications of owning a certain phone model are extremely significant.

For example, 87% of American teens own an iPhone, according to one survey. Because of this overwhelming majority, young people may feel shamed into hiding their Android phones (and the green bubbles that appear in iMessage) from their peers. Research comparing iOS and Android users' app purchasing habits reveals that iOS users are more likely to spend money on applications and use them frequently compared to Android users.

Even if a product is reasonably priced and has excellent quality and features, being known as the "cheap" brand can have serious consequences. When competing with Apple's high-priced yet luxuriously comfortable headphones, Meta risks being lumped into that category if it sticks to selling cheap headphones.