Dear Readers,
In this Update for Product | Strategy | Innovation I will briefly revisit Apple’s US$3,500 Vision Pro. I covered this product mid-2023 shortly after Apple CEO Tim Cook revealed the Vision Pro as “one more thing” to conclude Apple’s 2023 Worldwide Developers Conference (WWDC23).
Apple used WWDC23 to reveal Spatial Computing as a new platform category with a “hero product” to define an immersive, high-fidelity, visual experience in 3D with spatial audio. I recently experienced Apple’s Vision Pro user experience during a 25-minute product demo inside a local Apple retail store, so I thought I would share some of my observations regarding the product.
My opinion on the product hasn’t changed, but the high-fidelity, immersive experience was very impressive during the in-store demo. This doesn’t mean I think you should purchase a Vision Pro. It just means it is a premium experience compared to using the latest Oculus Quest or the latest iPhone with AirPods. This premium experience will attract innovators and early adopters to the platform.
Key Takeaways from the Vision Pro demo
I have used multiple virtual reality headsets. I have also experienced multiple virtual reality environments. But the Vision Pro is a different experience. It is a Porsche instead of a Volkswagen. I will share some key takeaways from the demo.
The Vision Pro high-resolution video experience within an immersive 3D Spatial Computing environment is really captivating. An object like a rhinoceros walking towards you or you looking down across a valley makes Spatial Computing really come to life. A conversation with Alicia Keys is captivating when she appears right in front of you.
Zeiss lens inserts matching my prescribed visual correction personalized the experience for me. However, the current lens inserts cannot correct for astigmatism which might limit the experience for some people with more significant visual impairments.
Eye-tracking and hand-gestures require multiple maneuvers to calibrate this novel user interface for the Spatial Computing environment. But once this is completed, you can just look at an item and select it with a finger pinch. You can also set up multiple screens and arrange them around you with hand gestures. You can also use voice commands for hands-free control.
The demo also highlighted watching a Red Sox baseball game at Fenway Park from the perspective of being on the field just behind first base to watch a close play between the runner and first baseman. Premium experiences to watch sporting events from remote locations could develop into a core use case for the Vision Pro. Teams, Sponsors, Leagues and Fans could all drive this use case to deliver premium user experiences.
The Vision Pro is well-designed, but somewhat bulky to wear and heavy even with a separate module for the rechargeable battery. It is comfortable initially but could become uncomfortable with extended use. This could be an obstacle to incorporate the Vision Pro into daily work activities beyond very specific use cases where immersion in a high-fidelity, 3D environment provides very unique value. Immersive experiences also generate more of a cognitive load that will also counter extended use with fatigue.
General observations about the Vision Pro
Apple is positioning Spatial Computing as a new platform category.
As the iPhone mobile platform matures, Apple needs a new product-oriented growth horizon to sustain innovation beyond growing revenue and profits with software services.
Vision Pro transports the user into a high-fidelity, immersive, 3D environment.
Eye-tracking, hand-gestures, and voice-input eliminate the need for a separate input device to control the Spatial Computing environment.
Cameras mounted on the surface of the Vision Pro enable 3D photo and 3D video capture.
Vision Pro is a “hero product” to define this new platform category.
Designed around the best technology available today even if this drives higher costs
Engages innovators and early adopters within the developer community to start building applications and media for Spatial Computing
Demo hero product with early applications and early media in Apple retail stores to foster test-drives of this new Spatial Computing platform.
The Apple Vision Pro is not designed to scale. It is designed to define a new category like the Lisa did for the graphical user interface and iPod did for music. Other products will scale just like the Mac did for Lisa and iPhones include iPod features to eliminate the need for a separate hardware product just for music.
Spatial Computing Roadmap led by the Vision Pro.
Premium-tier (Porsche) - Vision Pro and collaborations with top Brands.
Key Sporting Events - NBA, NFL, MLS, MLB, NHL playoff games - provide premium, scalable experiences for VIPs worldwide and key season ticket holders.
Premium Travel Destination Experiences - Delta Airlines, Hilton Hotels, American Express: Smithsonian Institution, Louvre Museum, Great Barrier Reef, Grand Canyon, Sydney, Tokyo, Rome, Istanbul, Paris, London, Shanghai, Berlin
Premium Virtual Experiences - Disney, NASCAR, F1 Racing, Mount Everest, Titanic
Mid-tier (Audi) - Lower cost options with immersive experiences for Spatial Computing
Similar to Vision Pro, but less expensive
Sacrifices features to reduce hardware requirements
Expands access to a broader user base with a lower price
Entry-tier (Volkswagen) - Augmented Reality glasses to scale access for Spatial Computing
Translate key features from Vision Pro into a product for the mass market
Provides eye tracking, hand gestures and voice as inputs to control the Spatial Computing environment
Information overlay to augment what you see
Spatial audio
Integration with AirPods and Apple Watch to eventually create a new mobile platform beyond the iPhone
Some Final Thoughts
Meta Platforms (previously Facebook) has pursued virtual reality using immersive 3D environments since it acquired Oculus for $2 billion in 2014. The objective was to move social media from mobile apps to virtual reality experiences. Facebook rebranded as Meta Platforms and created Reality Labs to build the technology. The company invested heavily into this space until it pivoted with intense pressure to reduce Reality Labs expenses in late 2022. Meta is now doubling down on AI and open-sourcing its AI models to keep proprietary AI models from companies like OpenAI and Microsoft in check.
Apple competitors Microsoft, Alphabet and Amazon are also investing heavily into AI. Apple appears to be behind these competitors in its efforts to advance AI initiatives but has a massive installed based of mobile devices worldwide with advanced services to train AI models based sensor and user data. Apple also prioritizes privacy which could be an important factor in an AI race. Apple also has the scale and resources to take on multiple strategic initiatives. But even with the AI opportunity ahead, Apple seems to sense the importance of creating the next mobile platform beyond the iPhone.
The Vision Pro is a hero product to define Spatial Computing, but augmented reality is likely the destination for mass market applications vs. premium virtual reality experiences. Eye-tracking, hand-gestures, and voice-inputs as the user interface to control Spatial Computing are key insights into what Apple may have in mind for the future. The Vision Pro will be disrupted once mass market products are widely available, but Apple may continue to expand Spatial Computing with premium user experiences to meet the needs of specific brands like Disney, the NFL, and F1 Racing.
Best,
Stephen
Nothing in this Update is intended to serve as financial advice. Do your own research. The opinions and views expressed in this newsletter are those of the author. They do not purport to reflect the opinions, views or policies of any other organization, company or employer.