Today, reports revealed that AR smartglasses firm Xreal would soon ship roughly 200,000 units. It is unclear how close the firm is to the landmark sales figure. However, in May, Xreal confirmed around 150,000 shipments.
The Co-Founder of Xreal Peng Jin said:
So you can do the math, how long it takes to do 200,000 units? It won’t take that long. Right now, 200 percent, 300 percent [growth], it should be the norm, it doesn’t really mean much. But I think it’s very encouraging that people are accepting this new form factor, they are accepting this new experience.
According to CCS Insights, purchasing rates for VR headsets and AR devices have dropped by more than 12 percent to 9.6 million in 2022. Moreover, at AWE 2023, Xreal noted that AR-based productivity tools would create the “first 100M AR killer use case,” meaning that it could be the first AR product to gain a user base of 100 million people.
Peng Jin also added:
We do see spatial computing as the major technological trend in the next maybe two, three decades. I don’t think the trick is in creating a whole bunch of original content so people can forget what they’re doing and evolve into that. For us, the content is already there.
Additionally, consumer opinion concerning the Vision Pro is remarkably split – again, providing an excellent opportunity for a competitor to swing in and sway opinion. A survey conducted by StreetBees found that 50 percent of questioned individuals aware of the Vision Pro are excited about the device. However, only 27 percent intend to buy it.
Moreover, of those StreetBees questioned, 40 percent do not intend to purchase Apple’s device. At the same time, 33 percent of individuals are undecided.
Interestingly, StreetBee’s study found that Vision Pro’s price point leads to 54 percent not wishing to buy the product. A key factor in potential success for Xreal and other competitors like Meta and HTC VIVE, as a cheaper device may sway audiences into immersive technology now that Apple has re-entered XR into the mainstream.
Xreal Global Expansion
Additionally, Jin said that the Xreal product portfolio, like the Vision Pro, “still need to connect with a PC or a phone.” According to the Co-Founder, when an operator uses the device, they will most likely need “a wire to connect with either of the devices.”
Moreover, according to Jin, 85 countries have signed up for the firm’s upcoming Xreal Beam product – which the firm announced at AWE 2023 – with the primary audiences stemming from the US, Japan, South Korea, and China. Specifically, China accounts for less than a third of Xreal sales.
Jin also stated in August that Xreal is expanding to online shipping support in chosen parts of Europe.
Apple’s Declining Assembly Forecasts
Notably, the news comes as Apple considerably slashes its assembly forecasts. This week’s reports claim that Apple’s overseas manufacturing partner Luxshare Precision Industry Co, is reducing its initial product assembly to 400,000 units. Meanwhile, two of Apple’s component manufacturing partners are also reducing expectations, with the assembly firms only reviewing requests from Apple to produce components that will support the distribution of roughly 130,000 to 150,000 units.
The assembly forecasts are significantly declining from Apple’s 1 million unit forecast and Luxhare’s internal forecasts of producing 18 million units annually in the coming years.
Rumours surround the Vision Pro’s production, with a quote stating that Apple faces difficulties in the complex production of the device’s micro-LED and curved, outward-facing lens. Moreover, Apple expressed dissatisfaction with its Sony and TSMC suppliers when it hosted its WWDC 2023 showcase, where the firm introduced the product.
It is unclear how long these challenges will last. However, Apple is most likely looking to improve forecasts and optimise assembly workflows to secure a solid debut for the Vision Pro.
Alternatively, with news of Apple’s challenges, it could allow competitors like Xreal and others to leverage a growing, interested, potential XR user base.
