Apple’s Vision Pro strategy will succeed in creating a two-tier market – TrendForce

Apple’s Vision Pro strategy of launching a very high-end professional product first, and a more affordable consumer version second, is likely to prove successful in the long-run, predicts market intelligence company TrendForce.

The company says that although many have criticized the very high price tag, the device has still captured a respectable 5% of the market, and has created expectations which competitor brands will need to meet …

Vision Pro’s unique positioning

Vision Pro is not the most expensive VR/AR headset on the market, but it is the first one to target more than just a niche market.

For example, the $6,500 Varjo XR-3 I tried last year is aimed only at the high-end design market.

The Varjo XR-3 needs to be tethered to a powerful PC. That’s because it’s solely targeted at the business and government sectors, which want the maximum possible performance – and compatibility with existing industrial design software. The company doesn’t even attempt to sell the XR-3 to consumers.

Vision Pro, in contrast, is a standalone product with a much broader range of potential applications. That gives it a unique position in the market.

The spec has set a new standard

TrendForce says that Apple’s very high-end displays in particular have set a new standard which other premium devices will need to meet.

The Vision Pro has succeeded in establishing a new standard for user expectations of VR/MR. It is also the first device in the industry to feature OLEDoS display technology, setting a new benchmark for product specifications and visual quality in the sector.

It has also broadened perceptions of what a VR/AR headset can do.

The launch of the Apple Vision Pro has shifted VR and MR devices beyond their traditional focus on consumer-oriented entertainment toward a broader role as multi-functional productivity tools. Vision Pro is redefining the capabilities and use cases of VR/MR devices—from document editing and virtual meetings to advanced applications in healthcare and education. This paradigm shift is expected to encourage other brands to reevaluate the functional attributes of their own VR/MR devices, expanding their role in both consumer and enterprise markets. 

The future is a two-tier market

Leaving aside specialist devices like the XR-3, TrendForce believes that Apple has effectively created a two-tier market, with likely demand for both Pro and non-Pro models.

Apple is expected to launch its next generation of VR/MR devices as early as 2026, with a strategy to introduce two distinct models targeting both high-end and mainstream segments.

The high-end model is expected to continue using OLEDoS display technology with a resolution exceeding 3,000 PPI, ensuring an exceptional visual experience. Apple will likely consider sourcing components from suppliers beyond Sony to reduce production costs, potentially including Chinese suppliers currently expanding production capacity.

For its mainstream model, Apple is expected to focus on affordability and cost-efficiency to target price-sensitive consumers. Possible display options for this model include glass-based OLED displays and LCDs with LTPO backplane technology, both of which offer a balance between performance and cost. This dual-track strategy will allow Apple to simultaneously target premium and mainstream market segments, reinforcing its influence in the global VR and MR market.

We’re currently expecting to have to wait a fair while for a second-gen Vision Pro model, while a more affordable non-Pro version may not arrive until 2028. But while that may be frustrating, Apple is playing a long game here, having been working on the project since at least 2008.

Photo by yang miao on Unsplash