Google and Samsung are venturing into the competition against Apple and Meta by developing their own mixed-reality headsets.
Corporations are teaming up to produce a mixed-reality headset that aims to rival Apple's Vision Pro and Meta's Quest 3.
The headset, crafted by Samsung, will operate on a new Android OS, aiming to disrupt a market predominantly controlled by Meta.
The cost of this headset, slated for release in 2025, remains undisclosed. Analysts predict Samsung may attempt to undersell Apple's $3,499 Vision Pro price tag. While Meta's Quest 3 retails for $500.
The Samsung headset will be the primary device to utilize the new Android OS for XR, before other firms can incorporate it into their devices.
Android for XR, a collective term for various VR and AR technologies, was developed in collaboration by Google, Samsung, and Qualcomm. It will be capable of powering various devices such as headsets and glasses.
Ted Mortonson, Baird's managing director, told CNN that this headset and underlying Android OS will help Google and Samsung gain a foothold in the wearable tech market and the future of consumer AI products.
"They're launching a direct attack on Apple," Mortonson commented, highlighting Google's AI prowess and Samsung's reliable hardware.
Apple's Vision Pro has failed to gain traction as anticipated, according to Mortonson, creating an opening for Google and Samsung to step in.
Meta is perceived as a market leader, boasting a strong position with Quest 3 and partnerships with Rayban. However, as headsets remain a niche product, the industry allows room for exploration, Scott Kessler, Global Sector Lead for Technology at Third Bridge, told CNN.
"We're in the early stages," Kessler said.
Dan Ives, a managing director and senior equity analyst at Wedbush Securities, stated that Google will focus on the mass consumer market by undercutting Meta's prices.
"This is a warning shot by Google to seize market share from Apple and Meta and demonstrate their intent not to be left out of the mix," Ives said.
Mortonson explained that this move is long overdue for Google, known for pioneering wearable technology with Google Glass in 2013, but discontinued in 2023. Another discontinued product from Google was Daydream, a VR headset released in 2016.
Google has lavished both resources and time into nurturing its generative AI capabilities following its acquisition of Deep Mind, an AI lab, in 2014. Via Gemini, its AI hub, launched in 2023, the new Android system will integrate features like an AI voice assistant and universal access to Android apps.
Won-Joon Choi, Samsung's mobile business head of R&D, expressed enthusiasm about the collaboration with Google, aiming to unveil innovative XR products.
"XR has transformed from a distant concept to a tangible reality," Choi remarked. "We see its potential to revolutionize interaction with the world, transcending physical barriers."
‘Nice to have, not need to have’
According to Kessler, the expectation was that Google would eventually enter the competition in the wearable tech sector, given the potential for growth in AI products.
At present, this type of headset is considered a "nice to have" rather than "need to have."
"The past year has served as a reminder that, however extraordinary these products may seem in terms of their capabilities, there is no outstanding feature that makes them must-buy items," Kessler explained.
Kessler also referenced the 2013 Google Glass release as a period of excitement surrounding a wearable tech product that eventually faded in popularity.
Mortonson emphasized that the true source of intrigue lies in the Android XR operating system and Google's attempts to monetize its AI products. He noted that this competitive landscape will continue to intensify as tech giants vie for market share.
"All these companies are striving to prepare themselves for opportunities as they emerge," Kessler concluded.
The Samsung-led partnership aims to challenge the market dominance of Meta and Apple in the business of virtual reality headsets.
With Google's AI capabilities and Samsung's reliable hardware, this new headset and its Android OS for XR could potentially offer competitive pricing, targeting the mass consumer market.
