According to recent data released by the IDC Worldwide Quarterly AR/VR Headset Tracker, the global market for XR headsets witnessed a significant growth of 130.4% year over year during the fourth quarter of 2023.
The report also highlighted how during the majority of 2023, XR headset shipments declined by 23.5 per cent year-on-year. However, new product launches at the end of 2023, such as the Quest 3, helped to rebound market performance in select regions during Q4.
Ramon T. Llamas, Research Director with IDC’s Augmented and Virtual Reality Program, added:
2023 began in much the same way that 2022 ended: with a series of significant year-over-year declines. This reflected the situation in many other markets, and AR/VR was not immune to them. However, this did allow companies throughout the ecosystem to further hone their experiences with mixed reality, artificial intelligence, and display technologies to prepare for a better 2024.
Moreover, during the last quarter of 2023, Apple was readying consumers with its Vision Pro device – released in February 2024 – which also contributed to broader investments into headsets.
Is Meta on the Uptick?
Reality Labs, Meta’s XR research division, has reported a quarterly profit for the first time, earning £1 billion. This comes after a year of efficiency, during which the division gained $1 billion in the closing three months of 2023. Although Reality Labs suffered a loss of $4.65 billion across 2023, the latest quarterly earnings have been positive.
Jitesh Ubrani, Research Manager, Mobility and Consumer Device Trackers at IDC, added:
After losing share to Pico and later Sony a few quarters ago, Meta’s share has been on a steady climb thanks to its ongoing subsidization of hardware and the launch of the Quest 3. While Apple’s entrance as well as newer devices from other vendors in this space certainly adds pressure, Meta’s lead will likely remain unchallenged during the year as the company’s low-cost, high-volume strategy will separate it from the rest of the pack.
Mark Zuckerberg, the CEO of Meta, also recently met with William Cho, the CEO of LG, and Park Hyoung-sei, the President of the Home Entertainment Company, at LG Twin Towers in Yeouido, Seoul.
The two-hour meeting discussed potential collaborations between the two companies on XR devices. This meeting has initiated a strategic partnership between LG and Meta to advance the development of XR devices and improve customer experience. More recently, Meta outlined its commitment to enterprise Metaverse solutions. Perhaps a new breath of life is coming from the firm.
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