Meta’s response to the Apple Vision Pro could be its smartest move… or its biggest mistake

Meta is changing course in its headset rivalry with Apple. Is it the right choice?

According to an August 23 report from The Information , Meta canceled its plans to launch a high-end mixed-reality headset, focusing instead on low-cost, low-end models like the Quest 3. The move marks a turning point in Meta’s rivalry with Apple since the launch of the Apple Vision Pro headset earlier this year.

Meta has insisted that its headsets are just as good, if not better , than the Vision Pro, but if that’s true, why would Meta back off the high-end headset market, leaving Apple to dominate it?

Is Meta betting on beating Apple through sheer numbers thanks to its lower prices? At first glance, that seems like the smart move. After all, no matter how impressive the Vision Pro is, most people can’t justify spending over $3,000 on one.

However, Meta’s shift toward the budget market could backfire. Here’s how.

Meta scraps high-end headset that could compete with Vision Pro

On Friday, details leaked concerning Meta’s plans to scrap a high-end mixed-reality headset slated for a 2027 launch window, as originally reported by The Information. The headset was intended to be Meta’s answer to the Apple Vision Pro, so Meta’s decision to abandon the project speaks volumes about where it stands in its rivalry with Apple.

Price was reportedly a major factor. Meta wanted to keep the new headset priced under $1,000, a feat that is undoubtedly difficult for a device aimed at competing with the $3,500 Vision Pro. So, perhaps it’s no surprise the project fell through.

That leaves Meta’s hardware focus on its low-cost headset line-up, which currently includes the Quest 2 and Quest 3, both of which start at $500 or less. That’s a far cry from the starting price of a Vision Pro. So, right now, Meta is the clear leader in the affordable headset market. Apple reportedly aims to launch a less expensive Vision headset next year, but it still won’t come close to matching Meta’s low-cost headsets. Meta could very well be setting itself up to dominate the budget mixed reality market.

Is that the right move for Meta’s long game, though? Maybe not.

Is Meta betting on the right headset market?

If Meta focuses all of its hardware efforts on creating budget-friendly headsets, it will appeal to the large segment of people who can't afford a Vision Pro. However, the long-term drawback of this strategy is the risk of Meta headsets developing a reputation as "cheap" or low-quality.

This is important due to its potential impact on the long-term headset market. The current smartphone market is a good example. While both Android phones and iPhones can cost over $1,000 and offer similar capabilities, there's a general perception that Android phones are less premium than iPhones. Some people don't care about that perception, but the social implications of having one type of phone over another can be a big deal in certain groups.

For instance, one survey showed that 87% of U.S. teenagers have an iPhone. That's such a vast majority that having an Android phone (and the green bubbles that show up in iMessage) can come with social stigma among young people. Studies on user spending behaviors on iOS and Android also show that iOS users spend more money on apps and use them more than Android users.

So, there are real drawbacks to being seen as the "cheap" brand, even if a product offers good quality and features for its price. Meta could easily find itself pigeonholed into that category if it limits its offerings to low-cost headsets while Apple continues producing expensive yet premium-feeling headsets.

Ironically, Apple hasn't yet secured leadership in the high-end headset market. It's no secret that Vision Pro sales have not been as high as Apple hoped . With the right product, Meta could still win back this segment of the headset market. It seems like that's not the plan, though.

For the sake of all users enjoying their Meta headsets, I hope Meta's strategy pans out. It may also aim for a Google-inspired tactic by focusing on software while letting other companies handle the expensive hardware development business. Earlier this year, Meta announced it is opening up the Horizon OS that runs on its headsets for third-party hardware developers, much like Android.

That strategy worked out well for Google. Maybe Meta can adapt it for the mixed-reality era… or maybe it's backing down from a battle with Apple that it could still win. Only time will tell, but we're keeping a close eye out for new developments.

More from Laptop Mag

• 'It might be the most advanced thing we've ever produced as a species': Game-changing Meta AR glasses set to amaze at September Connect event
• 'We're saying Quest is better' — Zuckerberg takes shots at the Apple Vision Pro
• Meta's new spatial framework could transform Horizon OS into a true Apple Vision Pro competitor