In a recent revelation, renowned supply chain analyst Ming-Chi Kuo has reported that Meta, previously known as Facebook, is expected to witness a significant drop in the sales of its Quest 3 headsets. Contrary to the initial forecast of 7 million units by the end of the year, the new projection stands at a mere 2.5 million units.
Key Highlights:
- Ming-Chi Kuo’s report indicates a drastic reduction in Quest 3 sales forecast.
- Original projection for Quest 3 was 7 million units for the year.
- Revised forecast suggests sales of 2.5 million units.
- The 128GB Quest 3 model remains available for launch week delivery.
- Quest 3, priced at $500, is considerably more expensive than its predecessor, Quest 2.
Quest 3’s Market Presence:
Despite the downgraded forecast, the 128GB Quest 3 model remains widely available for launch week delivery, hinting that the demand hasn’t exceeded expectations. However, in certain regions, the 512GB model has a backorder of up to two weeks.
Technical Enhancements and Pricing:
Quest 2, priced at $300, managed to outperform all its predecessors, reportedly selling around 20 million units. The Quest 3, on the other hand, boasts of significant advancements over the Quest 2. These include a 40% slimmer visor, sharper lenses, a GPU that’s over twice as powerful, high-resolution color passthrough, ringless and more. With its mixed reality capability, Quest 3 promises to offer entirely new experiences that were not feasible on the Quest 2. However, these upgrades come with a heftier price tag. The Quest 3 starts at $500, making it less accessible to a segment of potential buyers who might have been more inclined to purchase at the $300 or $350 price point
Meta’s Previous Pricing Challenges:
Meta faced similar pricing challenges with the Quest Pro, which was initially launched at $1500. Due to weaker sales, the price was reduced to $1000 within just four months of its launch.
Future Prospects for Meta:
Despite the current challenges with Quest 3 sales, this doesn’t necessarily spell doom for Meta’s long-term XR strategy. As per an internal roadmap leaked earlier this year, Meta is already in the process of planning the release of a more affordable headset in 2024, targeting a more appealing price point in the VR consumer market.
Summary:
The Quest 3, Meta’s latest VR headset, is facing challenges in the market, with sales projections being significantly reduced from 7 million to 2.5 million units for the year. While the headset boasts of several technical enhancements over its predecessor, its higher price point of $500 might be a deterrent for potential buyers. However, Meta’s future plans indicate a focus on affordability, with a cheaper headset expected to be released in 2024.
