Global Extended Reality (XR) headset shipments dropped 19% year-over-year (YoY) in 2023, according to Counterpoint’s Global XR (AR & VR Headsets) Model Tracker. However, the Apple Vision Pro could help spur an increase in sales, the research group adds.
Counterpoint says the YoY decline was caused by the absence of compelling new XR headsets, as well as a lack of attractive and engaging use cases beyond gaming. However, the launch of the highly anticipated Sony PlayStation VR2 (PSVR2) and Meta Quest 3 during the year helped mitigate a steeper decline in 2023.
Meta captured 59% of total global XR headset shipments in 2023, down from 77% in 2022. Counterpoint says this was mainly due to strengthened competition from Sony’s latest PSVR2. Meta’s shipment volume also declined by 38% YoY in 2023.
However, Meta continued to dominate the XR market in 2023. Notably, the company strategically lowered the price of its existing Quest 2 throughout the year, making it an attractive option for budget-conscious consumers, especially during the holiday season. This strategy helped Meta maintain its lead until the launch of Quest 3 in quarter four of 2023.
Meta’s Quest 3, which was launched in October, emerged as the best-selling XR headset in Q4 2023 as it captured over half of the volume. However, its launch-quarter shipments were 33% lower than during the Quest 2’s launch quarter, according to Counterpoint. The higher price point of the Quest 3, along with the continued availability of the Quest 2 and competition from other headsets contributed to the decrease in shipments for the latest model, adds the research group.
Counterpoint says Apple’s entry with the Vision Pro will contribute to greater content and use case development for XR headsets, as well as attracting other players to enter the segment. The research group adds that XR is viewed by many as an eventual potential successor to smartphones, although the Sellers Research Group (that’s me) says this won’t happen for years to come — if ever.
About the Vision Pro
Demos of the Apple Vision Pro at Apple Stores in the U.S. can be reserved on Apple.com. To reserve a free Vision Pro demo online, go here, then follow the steps to book an appointment at your local Apple Store.
Pricing for the Vision Pro starts at US$3,499 with 256GB of storage. ZEISS Optical Inserts are available: $99 for reading lens and $149 for prescription lens.
