onStrategy

on Vision PRO

May 7, 2023
2 minutes

Strategy | Business Models | Tech

Source: Scott Galloway


Apple vs. its critics
Will Apple’s Vision Pro be a flop?

Two weeks after the launch, Apple’s critics started to raise their voices: “Vision Pro will be a flop”.

Their reasons seem valid when you hear them:
1/ All the showcases were with persons alone or sitting
2/ Tim Cook never tried the device in public (unlike Steve Jobs with all the previous new devices)
3/ The participants were not allowed to wear the device for more than 25 minutes because it was heavy
4/ The price tag is unreasonable (ie. $3,500)
5/ The device is anti-Meta, hence not really what would Steve Jobs have wanted
6/ The headset category is too small in value; it should have pursued the EV industry (e.g. Apple Car)
7/ It doesn’t show status …like the iPhone; and many more.

Now, in Apple’s defense, I have some comments:
1/ I saw this critique in 2007 when the iPhone launched and guess what? After several iterations, Apple became number one. Why all critics were wrong? (including Steve Ballmer, Microsoft’s CEO at the time) — because the consumer is irrational when it comes to the buying decision.
2/ Except for the iPhone all major products adoption had a B2B approach. Apple understood that and delivered that and more (ie. targeting also the entertainment market)
3) As mentioned in last week’s newsletter, the pricing is in line with the past pricings:
* Apple 2 (1977): $6,500
* Mac (1984): $7,400
* Powerbook (1991): $5,500
4) Finally, Apple was forced the close the “3C” loop” –> Creating, Connectedness, and Consumption:
* with a Mac you can create
* with an iPhone you can connect
* with Vision Pro you can consume

I remain optimistic.

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