Apple's headset success depends on ecosystem integration

AppleInsider · May 24, 2023 2:24PM

The adoption rate of Apple's mixed-reality headset among iPhone users might parallel that of the AirPods and Apple Watch. However, the headset will be at a much higher cost.

Render of Apple's upcoming headset

Reports suggest that shipments of the upcoming headset from Apple might be aimed at developers with a limited production run, at least for the first year. It might also only attract serious buyers due to the high price.

To determine the response of the market to the new product, the most recent report by Consumer Intelligence Research Partners (CIRP) examines its potential rate of adoption to the AirPods and Apple Watch. As wearables, these products act as accessories to the iPhone, and the Reality headset might function similarly.

For example, approximately 40% of iPhone owners also have Bluetooth headsets, and around one-third own a smartwatch. Apple holds a substantial portion of the market among iPhone owners who own a Bluetooth headset or smartwatch.

Roughly 60% of iPhone owners with a Bluetooth headset possess AirPods, whereas more than 75% of iPhone owners with a smartwatch own an Apple Watch. Therefore, CIRP anticipates that consumer acceptance of the Reality headset will closely resemble the adoption patterns observed for these products, especially the Apple Watch.

Bluetooth headset and smartwatch penetration of iPhone owners, and Apple market share among device owners (twelve months ending March 2023)

Apple can expect a significant market share within a relatively limited consumer base for the headset. But that might depend on how well it fits into the Apple ecosystem, specifically with the iPhone.

AirPods easily connect to the iPhone, while the Apple Watch integrates with the iPhone experience at a higher level, incorporating functionalities like health tracking, managing notifications, and other features. The ease of connectivity with other Apple devices could be a driving factor for adopting the headset, regardless of whether it functions as a standalone device or an accessory to the iPhone.

The price of the Reality headset is also a significant concern. Priced at $3,000, it would be approximately three times higher than its premium competitors and more expensive than most other products offered by Apple.

"The last time Apple tripled a competitive market price was with its HomePod smart speaker," CIRP writes. "After almost five years in that market, Apple finds itself in a distant third place behind Amazon Echo and Google Home."

Read on AppleInsider

danox · May 24, 2023 2:37PM

The hardware and software integration has to be top notch, and whatever Apple or third software used/bundled up with the new device needs to be very usable from day one, a Apple Maps fiasco on the first day cannot happen.

dutchlord · May 24, 2023 3:11PM

The best ski goggles we ever made.

avon b7 · May 24, 2023 3:29PM

Apart from price, content is the biggest driver of adoption.

I'm pre-supposing XR will be the goal and not just VR.

Kierkegaarden · May 24, 2023 3:58PM

The product has not been released yet — so why does this article state that it is “priced at $3000”? Pathetic writing.

chutzpah · May 24, 2023 4:01PM

Priced at $3,000, it would be approximately three times higher than its premium competitors and more expensive than most other products offered by Apple.

Priced at $4,000, it would be approximately four times higher than its premium competitors!

Bigger numbers are bigger, who knew! Doesn't stop them being made up though.

mark fearing · May 24, 2023 4:04PM

I don't see any wide consumer appeal at this time. Unless Apple really has something surprising. It may also be more age dependent. I'm old (how did that happen!?) and it seems very uninteresting to me. But perhaps a younger demo. is more excited about wearing them. I don't know. But it'll be fun to see what exactly they are trying to do with it.

williamlondon · May 24, 2023 7:03PM

dutchlord said:

The best ski goggles we ever made.

The most childish post you keep pushing in these threads, how fucking original, and we don't give a shit what you think.

Japhey · May 24, 2023 8:15PM

I don’t understand how, after thousands of articles and rumors about these goggles, so many people are still completely clueless to the concept of an expensive developer model preceding the affordable consumer model.

No, Apple will not sell a great quantity of a brand new device that is 3x more than its competition. They don’t plan to. They aren’t trying to. They probably don’t even want to. That will all come later.

Then, there are the narcissists. Those who think these will fail just because they can’t find a use case for them, or because they can’t afford the first generation model that isn’t even intended for them, or because they are afraid of how they’ll look to others.

How about waiting until the things actually fucking exist before unilaterally dismissing them?

chasm · May 24, 2023 9:36PM

Japhey: nailed it!

michelb76 · May 25, 2023 7:59AM

Japhey said:

I don’t understand how, after thousands of articles and rumors about these goggles, so many people are still completely clueless to the concept of an expensive developer model preceding the affordable consumer model.

No, Apple will not sell a great quantity of a brand new device that is 3x more than its competition. They don’t plan to. They aren’t trying to. They probably don’t even want to. That will all come later.

Then, there are the narcissists. Those who think these will fail just because they can’t find a use case for them, or because they can’t afford the first generation model that isn’t even intended for them, or because they are afraid of how they’ll look to others.

How about waiting until the things actually fucking exist before unilaterally dismissing them?

This. People don't seem to remember Oculus DK1 etc.

Apple's headset success depends on ecosystem integration

Comments