In a detailed interview with The Information Facebook, CEO Mark Zuckerberg explained why Apple, HTC, Valve, HP and other companies may have trouble competing with the technology giant in VR and AR pricing.
“I’m quite inclined to take all the earnings we can get, from things like an app store, and just use that to lower the price,” said Zuckerberg.
Zuckerberg’s comments do not explicitly mention Apple, but in the context there is a high likelihood that he is aiming directly at the Cupertino-based company. Apple’s main business model seeks profit related to hardware sales, and today’s reports indicate that Apple may target $ 1,000 for its next mixed reality headset. The same price is mentioned by Zuckerberg in response to a question about what kind of business model Facebook will follow in VR and AR:
“The business model is likely to be largely around these [social] experiences, type of apps we’ve built, build them and more. If the app store turns out to be significant, great. But I think that our tendency will probably be to try to offer these products at the lowest possible cost, in order to be able to make them available to everyone. So, unlike some other companies in this space that basically charge premium prices as their business model, one of our basic principles is that we want to serve everyone. I’m very focused not only on how you create a good VR and AR device, but also at $ 300 instead of $ 1000. I think it’s a big deal. “
Over the past few years, Facebook’s VR headsets have continuously built up a 58% share of use in Valve’s Steam showcase, progressively reducing barriers both in cost and in the setup required for an enjoyable VR experience. These most recent comments represent some of the strongest evidence that Facebook is just getting started.