Tencent is reportedly providing the Apple Vision Pro a much-needed bridge to the Chinese market by making some of its most popular apps available on the device.
The Information, which was tipped off by someone “with direct knowledge of the decision”, believes that while the headset’s recent debut in US stores has enjoyed the support of Disney and others in the US, marketing the Apple Vision Pro would have been a struggle without the support of one of China’s leading technology companies.
The Apple Vision Pro is a mixed reality (MR) headset that is designed to extend the usability of ordinary computers by expanding the 2D desktop screens into a 3D computing interface of the world surrounding a user through which they can utilise MR-powered productivity apps.
We already know that Apple is planning to release the Apple Vision Pro later this year, as Tim Cook, Apple’s CEO, confirmed to state media at the China Development Forum in Beijing. A news post on one of CCTV’s Weibo accounts records Cook expressing his admiration for the country: “I am very confident in it (China).
“I love China, I love being here, I love the people and the culture. Every time I come here, I am reminded that anything is possible here.”
Breaking into the Chinese Market
Tencent essentially bypasses China’s strict market regulations in a country where Apple is also unable distribute its own video content.
In fact, Apple has not had any media or subscription service in China since 2017 due to government restrictions. In September last year, China even extended its iPhone ban to state-owned companies and local government workers.
Despite this, 90 percent of Apple’s products were still being made in China, although that figure will have changed with a combination of politics and the pandemic pushing production to other countries like India and Vietnam.
The times may well be changing now with evidence that the US technology company is once again hoping to launch Apple Arcade and Fitness+ in China, presumably through another back door.
Even iCloud+ and Apple Music may finally make an entry to the Chinese marketplace as it has grown its related teams. Another of The Information’s sources told the news provider that Apple has been employing Chinese executives from Tencent, Weibo, and Meitu to help find Chinese partners.
Is it worth it?
The Apple Vision Pro is only ever destined to reach a relatively small number of users due to its hefty price tag, and its US launch has received a mixed response with some finding the headset uncomfortable. On the other hand, as of last month, the Apple Vision Pro has topped 1,000 apps in the App Store.
Apple isn’t the only one competing for this space. In January this year, Tencent also formed an AR and VR software agreement with Meta to provide apps and games for its Quest headset.
Meta is planning to bring a significantly cheaper version to Chinese market in Q4 this year that will undercut Apple’s Vision Pro.
While Apple already has an online store in China, this partnership represents a breakthrough for Meta that does not have such an outlet and needed a local partner like Tencent to sell its products.
Apple may well be thinking many versions ahead, however, when it comes to real profit taking with subsequent releases destined to enter a more affordable price range.
Earlier this month, Apple already made the Apple Vision Pro version 1.1 available to the general public.
Whether or not this will turn out to be the first step in a lucrative overseas business strategy, the partnership itself between Apple and Tencent could be crucial going forwards for both companies. Apple has long provided a similar market entry point for Tencent by allowing WeChat to offer mini apps to its iPhone users.
Businesses elsewhere will also be taking note of Tencent as a possible way into an otherwise heavily regulated marketplace.
