![]() ![]() Meta’s offerings are so much cheaper than Apple’s that, basically, these companies are not going after the same customers. The same people are not in the market for both companies’ offerings.Ī similar thing is happening with Meta and Apple. Both companies sell clothes, but LVMH sells luxury clothes and Shein sells budget clothes. ![]() For example, LVMH ( OTCPK:LVMHF) is not in competition with Shein. When two companies’ pricing strategies are so different that they’re targeting totally different customer bases, then the similarity of their products doesn’t matter: they’re targeting different markets. The first is when the two firms are targeting completely different market segments. These observations are correct in general, but there are situations in which competition helps both firms. You might recall from economics 101 that competition is bad for margins, and that duopoly firms are less profitable than monopolies. They are the two best known names in the space and there is significant potential for them to help each other. There is Room for Both Companiesīefore getting into comparisons between Apple and Meta, I should say that I think there is plenty of room for both Apple and Meta to make money in VR. In this article I will explore Apple and Meta stock side by side to see which stock is a better VR buy. Sure, you could diversify into both, but if you must pick just one, you should pick the one whose vast VR spending will actually pay off. The question is, which, between the two of them, is the better buy? It’s an important question to think about because both Meta and Apple shares are fairly richly valued right now, and both companies are spending a lot of money on VR. We have two companies here that could easily benefit from increased adoption of VR and AR in the years ahead. So Apple’s launch could have real marketing benefits for Meta. ![]() People on the Quest subreddit have been saying that the Vision Pro has them interested in buying Quests as lower-priced alternatives. In fact, there is some indication that that’s already happening. The most expensive Quest model is less than a third the price of the Vision Pro, so it’s possible that Apple’s highly-publicized launch could get price-sensitive customers buying Quests. Meta’s offerings start at $500–less if you’re willing to buy older models–and max out at $1,000. Apple priced the Vision Pro at $3,499, a price point that many customers said they found unattainable. There have even been some signs that Apple’s launch could help Meta. Apple got a lot of people talking about VR this week, and that could help drive sales. The subsequent video ad has reached 27 million views. The WWDC at which the device was launched had over a million live viewers. As a result, there is a perception that VR is a ‘ fad ’ product category.Īpple’s Vision Pro launch has the potential to change all of that. Meta’s VR segment has never done more than a few hundred million in quarterly revenue. ![]() The recent launch of Quest 3 will likely cause revenue to rise again in Q2, though we don’t know how much. In the first quarter, Meta’s VR segment, Reality Labs, saw its revenue decline 51% as fewer people bought the Quest 2. The VR concept has struggled to catch on. That leaves Apple and Meta as the two main players in the space. Alphabet ( GOOG) made some moves in AR years ago, but its AR product, Google Glass, was discontinued. Today, AAPL and META are the two obvious plays for those looking to invest in VR and AR. Apple entered this week, with the launch of the Vision Pro. Meta has been in the space for years now, through the Oculus and later Meta Quest. Neon portrait of young woman wearing virtual reality headsetĪpple ( NASDAQ: AAPL) and Meta Platforms ( NASDAQ: META) are two companies making big moves in virtual reality (“VR”). ![]()
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