this post was submitted on 20 Dec 2023
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The game plan is the same as the game plan for the Mac, but they're going to run it in a fraction of the time because they already have the playbook. Apple's not in the business of "intentionally taking a loss," Apple is in the business of slowly iterating products into platforms over strategic time spans. That's exactly what they'll do here.
The OLED displays are severely supply constrained; I doubt Apple can produce more than one or two million in 2024. With so few units available, there are more than enough dyed-in-the-wool Apple fans and die hard VR geeks with $4k to burn to guarantee that it will be sold out until 2025.
This first million will create an ecosystem for the platform in the form of third-party software and enthusiast communities. The successful launch will entice more suppliers to make the OLEDs, increasing availability and reducing cost. That paves the way for a sans-Pro Apple Vision for $2,500 sometime in 2025 or 2026. The cycle repeats: more users, bigger community, more evangelists, more word of mouth, more software, cheaper components, and then Apple ships Apple Vision Air in 2027 or 2028 for $1,500. Then in 2030, Apple Vision Air 2 comes out but the original is still for sale at $999.
Now we're looking at Apple's standard good/better/best product matrix that they use for the iPhone, iPad, Apple Watch, and Mac, and we're also looking at a relatively Mac-like price range starting at a grand but with options running well above $5k.
The original Mac sold for $2,495 in 1984 which is about $7,000 adjusted for inflation. Apple's kicking this new platform off for half the entry price. No one knew what the heck the Mac was supposed to be for in 1984 either, but the entire desktop computing paradigm was forged in its image. We're now looking at a second Mac.
Agreed, when I said "intentionally taking a loss" that was referring to the short term. In the long term, like you said they're fairly likely to build this into a large lucrative platform. Great comment, you've made excellent points throughout, thanks for the good discourse :)