Meta CEO Mark Zuckerberg criticized Apple’s pricing strategy, saying the tech giant typically “charges as much as it can” for hardware, while Meta will take a different approach, selling products like its new AR/VR headset for $1,500 dollars, at a “breakeven price”. ” price point or in some cases even a loss (trans Business Insider).
In a podcast interview following the launch of the new Meta “Quest Pro” headset, Zuckerberg said it’s natural for hardware companies to want to make money selling products, but Apple is trying to charge customers as much as possible. In contrast, Zuckerberg said that Meta will take a different path with its portfolio of hardware products, arguing that his company may not make any profit from some of its sales and will instead rely on revenue generated by the software and services offered in the metaverse.
I think the business model will be disruptive in that usually people build hardware and try to make money off of it, where if you’re Apple, you build hardware and charge as much as you can for it. I think if someone comes into the space and basically says, “We’re going to build the best hardware in the space and basically sell it at break even, and in some cases maybe even slightly. at a loss to basically help grow an ecosystem with a business model where the revenue comes basically through software and services,” that business strategy, I think, is consistent with the mission of basically connecting people and having people there, because if you want to build a social experience , you have to have people there.
This week, Meta announced the Quest Pro, its latest AR/VR headset for the so-called “metaverse.” Priced at $1,500, the Quest Pro is the high-end successor to the Meta Quest and boasts a more comfortable design, more advanced display technology, and sensors that can read the user’s emotions and facial movements, according to Meta. Apple’s AR/VR headset is rumored to be announced in January, and you can learn more about it by checking out our AR/VR roundup.
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