Meta believes that Apple is its competitor in the field of metaverse. To stand up to the Cupertino giant, Mark Zuckerberg’s group will opt for a very different strategy. Indeed, Meta will rely on an open ecosystem compatible with Android devices, where the hardware will be sold at cost price and the value created on the sale of content.
During an internal meeting with several employees, Mark Zuckerberg, CEO and Founder of Meta, recently discussed the development of the metaverse, or metaverse, in French. In the recording obtained by our colleagues from The Verge, the billionaire is very upset against Apple. Zuckerberg considers the iPhone maker to be its main competitor in the field.
“I think it’s pretty clear that Apple is going to be a competitor for us, not just product-wise, but philosophically. We approach this in an open way and try to build as open an ecosystem as possible. We try to make things compatible with Android. We are trying to develop the metaverse in a way that you can transport your digital assets from one world to another,” says Mark Zuckerberg.
Meta vs Apple: two opposing philosophies
The manager was answering a question from an employee who wondered about the absence of Apple within the Metaverse Standards Forum. This coalition aims to define the standards of the future metaverse. Several reputable companies, such as Microsoft, Adobe, Alibaba, Epic Games or Meta, joined the initiative as soon as it was launched. Zuckerberg believes that the noticeable absence of Apple is not a surprise, pointing to the closed approach of the firm.
“It’s a contest of philosophies and ideas, where they believe that by doing everything themselves and controlling everything tightly, they’re building a better consumer experience,” says the Facebook founder.
If Apple has already confirmed its interest in virtual reality and the metaverse, the American giant has not yet launched any product related to virtual worlds. Thanks to a host of leaks, however, we know that the Cupertino giant is currently developing virtual and augmented reality headset as well as a pair of AR glasses, the Apple Glass. According to rumors, Apple would also present its first virtual reality headset as early as January 2023. A working prototype was presented to the company’s board of directors last May.
Despite having no product on the market, Apple is widely regarded as one of the major players in the smart glasses industry. As early as 2019, analysts from Digi-Capital and WWE also erected Apple as a 3rd largest player in the smartglasses market, alongside companies that have already proven themselves, such as Microsoft. Analysts expect the arrival of Apple to completely shake up the industry. To find a place in the market, the Californian giant would rely on a hybrid, so-called mixed approach, combining virtual and augmented reality.
Read also: Meta increases (a lot) the price of its VR Quest 2 headset, but gives a small gift
How Meta wants to differentiate itself from Apple
In his speech, Mark Zuckerberg suggests that Meta will try to get out of the game thanks to the device prices. Metaverse-oriented products will be “sold at cost” or with a “slight subsidy, or slightly above cost in some cases.” Meta does not expect to generate large profits by selling its devices. Instead, the company wants attract Internet users to its metaverse, where they can purchase digital goods and services. To reap profits, Meta will require a fee of 47.5% on each sale made in its metaverse.
On the other hand, Apple should market its accessories dedicated to virtual and augmented reality at high prices. The firm would remain faithful to its pricing policy. According to the latest rumors, the brand’s helmet would be offered at a price of around $2,000. The product would therefore be resolutely turned towards the top of the range.
Meta wishes above all to differentiate itself from its rival thanks to a more open approach. Its products will notably be interoperable with devices running Android. With that in mind, Meta already allows users of a Quest headset to install apps outside of its own store. The approach is similar to Google’s on Android. Unless there is a big surprise, Apple’s headset should only be compatible with brand products and applications developed with ARKit. The brand has always wanted to keep its ecosystem under control.
A loss of $2.81 billion
Mark Zuckerberg’s speech comes as the development of his metaverse is stalling. As announced on Wednesday July 27, Meta saw its quarterly revenue decline for the first time in its history. Revenue reported was $28.8 billion, down 1% from the same period last year.
This decrease is notably due to the deficit of the metaverse division, Reality Lab. The division lost $2.81 billion in three months. Forced to cut costs, Meta canceled its dedicated metaverse smartwatch project and the release of its first pair of AR glasses.
Source :
The Verge