Apple’s VR Business Shaky After Layoffs
Apple’s VR Business Shaky After Layoffs
Company shifting development efforts to AI, smart glasses as Vision Pro headset fails to gain market traction.
With Apple’s CEO role transitioning from Tim Cook to John Ternus next week, one of the new CEO’s challenges will be trying to put some life into the company’s struggling VR business. Last week, the electronic company suffered a potentially damaging blow when it reportedly cut 60 workers from its VR group as part of a larger layoff.
The 60 workers were among the rumored 200 workers laid off by Apple, which engineers working on its Siri interface and other software development tasks. Apple’s layoffs, while paling comparison to the recent massive cutbacks at other tech companies, are a stark reminder of the challenges Apple faces as its leadership transitions from an operations expert in Cook to Ternus, whose rise to leadership stems from his accomplishments guiding Apple’s hardware development. Apple has come under criticism for its development of AI and is likely to face more questions about its future in augmented reality and virtual reality.
According to the report on 9to5mac, the company remains committed to its vision computing efforts, despite rumors that Apple disbanded its Vision Products Group. Recently, Apple unveiled a beta version of its latest Vision OS, indicating the company still has its hand in developing AR/VR products.
Missed Opportunity?
Apple announced its Vision Pro headset in June 2023 and started selling it nine months later. From the outset, the company has given the impression of only dipping its toe in the water with its AR/VR product rather than mount a full-fledged development effort.
For one, Apple priced the Vision Pro headset at a high $3,499, and appeared to keep production quantities low. By comparison, Meta currently sells its lowest-priced AR/VR headset, the Quest 3S, for $349 on Amazon. While Apple aimed the Vision Pro at enterprise and business users and not gamers as part of a deliberate attempt at growing what it terms as the spatial computing business, the adaptation of the headset has never really generated significant momentum in its intended market to warrant further investment.
In the two plus years the Vision Pro headset has been available, Apple has not lowered the headset’s price or attempted to introduce a less expensive model that might have broadened its appeal.In fact, according to the 9to5macreport, Apple made the Vision Pro headset even more unaffordable this past June, raising the price to $3,699 as the current memory shortages led to price hikes for several Apple products.
Smart Glasses to the Rescue?
As Apple puts VisionPro headset development on temporary hiatus, attention has shifted to smart glasses, where rumors have circulated in recent weeks through many videos the company is working to develop a product designed compete with offerings from Meta, which despite its own problems offers a series of Smart AI glasses.
Apple’s smart glasses are reportedly relying on cameras, Siri, and Visual Intelligence rather than an AR display. But already, Apple’s smart glasses are seeing development and marketing delays due to privacy concerns, according to this YouTube video on the channel ZoneofTECh, which reviews Apple products. You can watch the video here.
How Apple tackles this issue could go a long way in determining the company’s future in AR/VR.
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