We saw lots of initial buzz for the Quest 3 during the recent launch event…
Rumors are now circulating though that demand is significantly weaker than anticipated!
This came from supply chain analyst Ming-Chi Kuo…
He claims the original forecast for Quest 3 was 7 million units by the end of 2023, and that this number has been downgraded to around 2.5 million.
When it comes to analyst predictions, changes of just 30 to 40 percent are seen as very substantial.
We are talking here about a potential 64% decline!
This means that Meta may be in for some big hurdles with their VR business if the forecast is even remotely accurate…
This is especially true given that the company is now in direct competition with Apple!
This may be part of the reason why the cost of the Quest 3 and Vision Pro will be so different…
At $500 for the base model, it’s possible that Meta may even be selling the headsets at a negative profit margin!
The play?
Get the device into the hands of as many consumers as possible, to then reap the rewards in the digital marketplace…
Interestingly enough, a Meta worker recently spoke to Bloomberg about the company currently being in an “afraid of Apple stage”.
If this is true then Zuckerberg is certainly doing his best to keep it under wraps!
Meta’s CEO had a largely dismissive tone after the unveiling of the Vision Pro a few months back…
With how strong Apple’s branding power is though, I believe that this is mostly a facade.
Meta will likely be fighting tooth and nail over the VR/AR space in the coming 3 to 5 years.
That’s all for now…
Until Next Time,
-Damian