Chinese netizens hesitant about Apple's Vision Pro headset, but the market could soon see cheaper rival devices, analysts say

Chinese consumers appear sceptical of the Apple Vision Pro, the US technology giant's freshly announced augmented reality (AR) headset, but analysts say the high-end device could help pave the way for cheaper alternatives from Chinese companies.

Apple unveiled the Vision Pro, its first major new product in a decade, at its annual Worldwide Developers Conference in Cupertino, California on Monday. CEO Tim Cook said the device, which allows users to experience digital content such as games and 3D videos overlaid onto any physical space, marked "the beginning of a new era for computing".

The headset, which runs on a dedicated operating system called VisionOS, is expected to hit the market next year, starting in the US. Major developers including Microsoft and Zoom will be among the first to launch apps for the device.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

Priced at US$3,499, the Vision Pro stirred lively discussion on Chinese social media. While many internet users marvelled at the design and functionalities of the gadget seen in Apple's introduction video, some also questioned its practicality.

"It's indeed a good product, but who would wear it every day?" said one of the most up-voted comments on Weibo, a Twitter-like platform in China.

"It would be a truly revolutionary product if the price could fall under US$2,500 in the future, and if the Chinese version can become even cheaper," read another popular post. "This price tag indicates that the product will need time to take off."

With its premium pricing, the Vision Pro is unlikely to be a key driving force in China's AR and virtual reality (VR) device market, according to a report published by research firm IDC on Tuesday.

A screenshot from a video by Apple demonstrating the use of its new Vision Pro AR headset. Photo: Handout alt=A screenshot from a video by Apple demonstrating the use of its new Vision Pro AR headset. Photo: Handout>

Shipments of AR and VR devices in the country fell nearly 38 per cent to 173,000 units in the first quarter due to cost-cutting measures by major brands and a weak demand for non-necessary gadgets, IDC data showed.

Apple failed to "demonstrate the need to use the Vision Pro in everyday life", and it remains to be seen "whether Apple can provide more attractive apps, content and ecosystem before launch", said Kuo Ming-chi, an analyst at TF International Securities.

However, the Vision Pro is likely to push Chinese companies to expand production of their own AR and VR devices, resulting in upgrades in the industry supply chain and reduced costs in the next two to three years, according to the IDC report.

The Apple device is also expected to encourage the use of more AR and VR technologies in workplaces, breaking the stereotype of it being an entertainment device, IDC said.

A screenshot from a video by Apple demonstrating the use of its new Vision Pro AR headset. Photo: Handout alt=A screenshot from a video by Apple demonstrating the use of its new Vision Pro AR headset. Photo: Handout>

The mainland Chinese market is currently led by ByteDance's Pico, which held a 43 per cent share last year, followed by DPVR at 36 per cent, according to research firm Counterpoint.

Other local tech companies are also eying expansion into the segment. Chinese smartphone maker Oppo last week launched its first mixed reality headset with joystick controllers for developers.

Apple's new headset is "truly amazing", wrote Thomas Wang, general manager of Xiaomi's office in central Henan province, on his Weibo account. Xiaomi was a co-developer of Facebook's Oculus Go VR headset, released in 2018.

"The Apple Vision Pro is far superior to similar products on the market, especially because it can be worn without disrupting everyday life," he said. "However, it is unlikely to take off until the core issues of power consumption, heat dissipation and cost are solved. Personally I think it will take three to five years for it to achieve wide adoption."

A screenshot from a video by Apple demonstrating the use of its new Vision Pro AR headset. Photo: Handout alt=A screenshot from a video by Apple demonstrating the use of its new Vision Pro AR headset. Photo: Handout>

Apple's new product is a "powerful shot in the arm" for the AR and VR ecosystem, said Huang Zhuang, CEO of Shenzhen-based VR content developer Naochuanyue.

"It has opened the eyes of people outside the industry to the possibilities of [extended reality]. For the whole supply chain, Apple has shown its goal, which is to reduce costs as a next step," he said.

Huang added that his company, which develops VR content such as video games and training apps, is looking forward to developing spatial computing content for the new device.

"Although we haven't seen the real thing yet, with Apple's experience and a reasonable positioning, I must say this is indeed a recreation of the iPhone moment," he said.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2023. South China Morning Post Publishers Ltd. All rights reserved.