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“It’s not profitable”… The market for premium headphones for RM is shrinking

Meta has stopped producing high-end mixed reality (MR) headsets to compete with Apple’s ‘Vision Pro’. As the market reacts with skepticism about the profitability of expensive headset devices, major companies that entered the race to develop extended reality (XR) devices appear to be reviewing their strategies.

According to foreign media such as The Information and The Verge on the 24th (local time), Meta has stopped developing high-end MR headset products. The code name of this product is “La Jolla”. Development began in November last year and was planned to be launched in 2027. Citing an insider, The Information reported that CEO Mark Zuckerberg and other executives held a meeting this week and instructed employees to stop working on the La Jolla headset.

This is due to the inability to lower product prices. The La Jolla is a premium MR headset that was planned to use the ultra-high-resolution micro organic light-emitting diode (OLED) display used in the Vision Pro. Micro OLED displays are small in size and require complex production processes. Reality Labs, the development department, reportedly aimed to lower the price of the headset to less than $1,000 (approximately 1.33 million won), but failed to achieve this as micro OLED production costs rose.

In particular, the poor performance of Apple’s Vision Pro appears to have had an impact. The Vision Pro posted lower-than-expected sales amid assessments that its performance could not keep up with its $3,500 (4.65 million won) price tag. According to market research firm IDC, Vision Pro shipments in the second quarter since its launch in February were around 80,000 units and are expected to fall below 20,000 units in the third quarter.

Furthermore, the fact that the ‘Quest Pro’, which was launched for $1,499 but not the Vision Pro, also performed poorly is a factor that raises questions about the marketability of high-priced products. Meta’s existing MR products, ‘Quest 3’ and ‘Quest 2’, sell for $500 and $200 respectively.

Instead, both Apple and Meta plan to focus on releasing entry-level headsets. Apple plans to release a cheaper version of the MR headset than the Vision Pro next year. The price range is expected to be around $1,500, which is cheaper than the Vision Pro. Meta is also expected to popularize the relatively inexpensive ‘Quest Ventura’ by releasing it later this year.

Reporter Lim Song-su songsta@kmib.co.kr

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