Quest 3 Demand Falls Well Short of Meta’s Target, Analyst Claims

Meta’s Quest 3 Headset Sales Forecast for 2023 Lowered to 2.5 Million Units, Analyst Claims

Introduction

Supply chain analyst Ming-Chi Kuo recently reported that Meta, formerly known as Facebook, is expected to sell significantly fewer units of its Quest 3 headset than originally anticipated. The initial forecast projected sales of 7 million units by the end of this year, but that number has been downgraded to just 2.5 million units. This downgrade in sales projections raises questions about the demand and market reception for the new VR headset.

Quest 3 Availability

Despite the lowered sales forecast, the 128GB Quest 3 model remains readily available for launch week delivery on the Meta Store and most online retailers. This suggests that demand may not be as high as expected. However, in certain regions, the 512GB model is backordered by two weeks, indicating some level of interest and demand for the higher-capacity variant.

Quest 2 Success and Quest 3 Improvements

The Quest 2, Meta’s previous VR headset, achieved remarkable success, reportedly selling approximately 20 million units. The Quest 3 was introduced with several noteworthy enhancements over its predecessor, including a 40% slimmer visor, improved lenses, a more powerful GPU, relatively high-resolution color passthrough, and ringless controllers. Additionally, the Quest 3 offers mixed reality capabilities that promise entirely new and immersive experiences.

Pricing Impact and Consumer Accessibility

The significant upgrades and advancements in the Quest 3 come at a higher cost compared to its predecessor. With a starting price of $500, the Quest 3 is substantially more expensive than the Quest 2, which launched at $300. This puts the newer headset in a different pricing category, potentially making it less accessible for some consumers who were willing to purchase the Quest 2 at a lower price point. It is worth noting that even when considering inflation, the Quest 2’s adjusted launch price would be much more affordable at $350.

Meta’s History and Market Strategy

Meta previously faced challenges with its Quest Pro headset, which struggled to sell at its launch price of $1500. As a result, the company had to reduce the price to $1000 just four months later. The lower-than-expected sales of the Quest 3 may not significantly impact Meta’s long-term XR (Extended Reality) strategy. According to a leaked internal roadmap, Meta is already planning to release a cheaper VR headset in 2024, targeting the most attractive price point in the VR consumer market. This suggests that Meta acknowledges the importance of balancing price and performance to appeal to a broader audience.

Conclusion

In conclusion, supply chain analyst Ming-Chi Kuo’s report indicates that Meta’s sales forecast for the Quest 3 headset has been downgraded from 7 million units to 2.5 million units. While the availability of the 128GB model suggests moderate demand, the higher price point of the Quest 3 compared to its predecessor may hinder its accessibility for some consumers. Nonetheless, Meta’s history and future roadmap demonstrate that the company is committed to refining its product lineup and addressing market demands. As the VR industry evolves, it will be intriguing to see how Meta adapts and innovates to capture a broader consumer base.

Source link