Amid a potential watershed moment for the VR industry, insights gleaned from over 100,000 pieces of consumer feedback HundredX has gathered over the last year shine a light on the competitive landscape facing Apple and Meta.

As Apple potentially prepares for its virtual reality (VR) and augmented reality (AR) hardware debut and Meta updates its Quest series, we look at product and brand positioning to see how Meta is currently positioned in the VR market and what strategies Apple could utilize to win.

Our insights from “The Crowd” of real consumer electronics users find:

• The broad suite of Apple products we track are the leaders in customer satisfaction across every age group, although outperform broader consumer electronics most with middle-aged adults. They are poised for the most growth with 18-29-year-olds. Meta Quest products appear to resonate most, and are poised for the most growth, with middle-aged customers.
• Apple customers, especially its older customers, care more about the usability of their products than the average consumer electronics customers. The Apple AR/VR headset will have to be easy to use – something competing VR headsets are not known for – to resonate well with the average Apple customer.
• On the other hand, “The Crowd” views Meta Quest devices as harder to use than the average consumer electronic product. If Apple can produce a headset that’s easy to use, they’d be better positioned to dominate the VR market.
• Design and comfort are important to Meta Quest customers. Customers became significantly happier with Meta Quest’s design around the release of the premium-priced Meta Quest Pro in October 2022.
• Apple will need to be careful how high it prices its AR/VR headset. The headset is expected to be more expensive ($3,000) than any competing headset and will be announced at a time when “The Crowd” is generally unhappy with the price of other Apple products. Apple will need to deliver on ease of use, comfort and advanced technology for customers to see value.
• Still, the audience might be there for Apple’s AR/VR headset. Meta Quest customers leaving feedback with HundredX also leave more than 3x more feedback on iPhone and AirPods than the average respondent, indicating they may use some Apple products more than the average person.

For Apple to keep momentum going with its 18-29 age group where its Usage Intent⁶ is highest across products, it may want to focus on building out the headset’s gaming capabilities and library.

VR is still an emerging field that doesn’t have a lot of practical uses. On the consumer front, it has resonated most with gamers – proven by the relative success of PlayStation VR, HTC’s headsets, and the Valve Index VR, all headsets designed specifically for gaming. Meanwhile, AR headsets, like Microsoft's HoloLens, have largely been confined to industrial use cases, although some smartphone entertainment apps and games, like Pokémon Go, have long incorporated basic AR technology.

As one of the only other major companies to release a standalone headset, as opposed to one that requires connection to a PC or console, Meta will likely emerge as Apple’s biggest competitor in the VR space. It has steadily brought new games to its Meta Quest platform, including hit games like Beat Saber, PowerWash Simulator VR, and Resident Evil 4 VR.

Gamers tend to skew younger, which has worked well for VR headsets. The devices are still largely tricky to navigate as companies continue ironing out the kinks in VR technology. Sentiment towards Meta Quest’s usability is 17% lower than that of the average consumer electronic device. It’s 29% lower than that of Apple’s iPhone and 17% lower than other Apple products we follow. The sweet spot for Meta Quest in terms of  NPS® and Customer Satisfaction is middle-aged users between 30-49. HundredX respondents that leave feedback on Meta Quest are 8x more likely to also leave feedback on Xbox or Nintendo Switch, suggesting a significant overlap⁷ between Meta Quest users and console players.  

It’s unclear if Apple will promote gaming on its headset – analysts offer different reports. It is clear, though, that when it launches, it likely won’t have the amount of premium games Valve Index or PlayStation VR have. This could present a problem for Apple, which has long shied away from the premium game market, if it wants to steal away some of its competitors VR customers. 

Price may play an important role in the headset’s success

While Apple’s AR/VR headset is set to feature premium technology – a positive, as electronics customers select technology as the #1 reason they like or dislike a product – it’s also predicted to have a premium price tag.

Analysts and leakers have predicted the headset will cost $3,000, While it looks like it will feature premium features including combined 8K display, high-tech cameras and sensors, and a portable battery pack, the price is still higher than any of its competitors.

However, it's worth noting that Apple's reputation for high-quality, design-centric products often justifies their premium pricing for many consumers. Users choose Apple not just for the particular product but also for its seamless integration with its ecosystem, which can enhance the overall user experience. Apple's consistent delivery on these fronts has built a loyal customer base that is often willing to pay more.

Meta Quest Pro, released in October 2022, starts at $1,000. Meta Quest 3, set to debut this fall, will start at $500. Other competitors, like PlayStation VR, Valve Index, and HTC Vive Pro 2, range from $550 to $1,300. It's worth noting that these headsets lack the AR capabilities Apple's is rumored to have. Meta is reportedly in talks with AR headset maker Magic Leap to license its technology, setting Meta up to better compete with Apple.

Despite the lower costs of Meta Quest devices, customers still aren’t pleased with their price. Sentiment towards Meta Quest’s price is 20% lower than that of the average consumer electronic product. 

Apple, known for its high-quality but expensive, products, already has customers with pretty negative feelings about price. Price sentiment for the iPhone is 49% lower than that of the average consumer electronics product, and 32% lower than that of the Meta Quest.

Given the Apple AR/VR headset is set to cost about three times the amount of the Meta Quest Pro and double the cost of the most expensive iPhone, it’s likely customers won’t be pleased with its price either.

While Apple’s AR/VR headset is set to feature premium technology, it's vital for Apple to justify the product's value. They could do this by highlighting its premium features, seamless integration with other Apple products, and offering flexible payment or upgrade options.

Most analysts agree that this first headset will price out many consumers, and instead will target developers and power users. Apple will likely develop cheaper models over the next few years. But it will likely have to drop its price significantly to not turn off its broader customer base.

Despite their relatively high prices, customers are happier with the value of any of Apple’s products than Meta Quest products. If Apple’s AR/VR headset is easy-to-use, technologically advanced, and comfortable, its users could see the value in its reported $3,000 price tag. For example, some Mac models are priced at a similar or greater premium to peer products as the rumored price of the headset, yet its value sentiment is still in line with our broader consumer electronics coverage. 

Feedback overlap highlights a possible existing customer base

We’ve found Meta Quest customers leave way more feedback on Apple products than the average respondent, showing that they are more likely to own them than the average person. Meta Quest customers leave 3x more feedback on iPhone and AirPods than the average person who shares feedback across the 2,500+ brands we track. If they own a Meta Quest device, and already own an Apple device, it may not take as much convincing for Apple to get Meta Quest users to switch to an Apple VR device, especially if it already integrates well with their existing Apple products. 

To further appeal to these users, the AR/VR headset should aim to integrate seamlessly with these devices. Features that allow users to easily sync, control, and share content across devices could be particularly appealing. This deep integration would offer a level of usability and functionality that would potentially distinguish the Apple AR/VR headset from its competitors. 

It becomes clear that Apple's entry into the VR scene must focus on providing an experience that matches its brand identity: intuitive, user-friendly design, high-quality products, and seamless integration with its existing ecosystem. 

With its history of groundbreaking innovations, Apple now stands before a new frontier to conquer. It must, however, listen to its consumers, meet their needs, and stay true to its brand, ensuring that its AR/VR headset doesn't just turn heads, but truly resonates with its audience. Keeping a continuous flow of communication with its users will help Apple understand the evolving needs and preferences of its customer base, allowing Apple to make necessary adjustments and improvements to its headset.

1. All metrics presented, including Net Usage Intent (Usage Intent), and Net Positive Percent / Sentiment are presented on a trailing three-month basis unless otherwise noted. 
2. HundredX measures Customer Satisfaction, or CSAT, on a 5-point scale. 
3. Net Promoter Score ® measures a customer’s willingness to recommend a given brand to a friend, on a scale of 1 to 10. The metric represents the percentage of customers who are promoters (answering 9 or 10) minus the percentage who are detractors (answering 6 or less). 
4. Our “listening” methodology allows customers to select the brands that matter to them and then summarize their usage, experience, and future spending intent. Selection Frequency represents the percentage of customers who decided to provide feedback on a brand and then select a given “driver” of customer satisfaction (such as Price, Speed or Brand Values & Trust) as a reason they think the product or service is good or bad. Selection frequency is an indicator of how important a driver is in determining how customers as a whole feel about the brand. 
5. HundredX measures sentiment towards a driver of customer satisfaction as Net Positive Percent (NPP), which is the percentage of customers who view a factor as a positive (reason they liked the products, people, or experiences) minus the percentage who see the same factor as a negative. 
6. Usage Intent reflects the percentage of customers who plan to use a specific brand during the next 12 months, minus the percentage who plan to use less. 
7. HundredX evaluated overlap on a trailing twelve-month basis.