CHART: A Look at the Global AR/VR Market in Q1 2024
Apple rose to the second-largest vendor in the first quarter of its entry into the market.
- VR headset sales plummeted 67.4% in Q1 2024 compared to last year.
- Consumers are shifting towards mixed reality (MR) and augmented reality (AR) devices.
- Meta's Quest line remains the sales leader, while Apple rose to second-largest vendor in the first quarter of its entry into the market.
A recent report by the International Data Corporation (IDC) just dropped a bombshell. VR headset sales took a nosedive in the first quarter of 2024, plummeting a whopping 67.4% compared to Q1 2023. This Q1 decline also contrasts with the explosive 130% growth we saw in the last quarter of 2023.
But wait a minute, this isn't the end of the story. The report suggests the decline in shipments was expected not because people are ditching immersive tech altogether, but because the market is transitioning towards new categories such as Mixed Reality (MR) and Extended Reality (ER).
However, despite VR sales slumping, the average price tag for headsets went up by over $1,000. This price hike can be partly blamed on Apple's flashy new $3500 Vision Pro headset after the tech giant shook things up by entering the MR market.
Wisdom Okogho
Analysts explained that Apple's arrival inflated overall MR headset prices. However, budget-friendly options from Meta (think the ever-popular Quest) and HTC are keeping things accessible for the average consumer. The good news is that Experts predict MR headset costs will eventually come down as the market matures.
