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Meta CEO Mark Zuckerberg has criticized Apple's pricing strategy by claiming that the tech giant typically "charges as much as it can" for hardware, whereas Meta will take a different approach by selling products like its new $1500 AR/VR headset at a "break even" price point, or in some cases even a loss (via Business Insider).

tim-cook-mark-zuckerberg.jpg

In a podcast interview following the launch of Meta's new "Quest Pro" headset, Zuckerberg said it's natural for hardware companies to want to make a profit on product sales, but that Apple seeks to charge customers as much as possible. In contrast, Zuckerberg said Meta will take a different route with its portfolio of hardware products, and claimed his company may make no profit from some of its sales and will instead rely on revenue generated by software and services offered in the metaverse.
I think the business model will be disruptive, in that it's typically people build hardware and they try to make a profit off of it, where if you're Apple, you build hardware and you charge as much as you can for it. I do think that having someone come into the space and basically say, "We're going to build the best hardware in the space and we're going to basically sell it at a break-even point and in some cases, maybe even slightly at a loss in order to basically help grow the ecosystem with the business model of basically having the revenue come through software and services", that business strategy I think is aligned with the mission of basically connecting people and having people there because if you want to build a social experience, you have to have the people there.
This week, Meta announced the Quest Pro, its latest AR/VR headset for the so-called "metaverse." At $1500, the Quest Pro is the high-end successor model to the Meta Quest and boasts a more comfortable design, more advanced display technology, and sensors that can read a user's emotions and facial movements, according to Meta. Apple's AR/VR headset is rumored to be announced in January, and you can learn more about it by checking out our AR/VR roundup.

Article Link: Zuckerberg: Apple 'Charges As Much As It Can' for Hardware, But Meta Is Willing to Sell at a Loss to Grow the Metaverse
 
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senttoschool

macrumors 68000
Nov 2, 2017
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It's true. It's why Apple lost in the TV streaming stick market and in the smart speakers market. Other companies were willing to sell at break even or low margins or even at a loss in order to make money through other ways.

It'll be tough for Apple to win in the VR market unless its devices are significantly superior.
 
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Sheepish-Lord

macrumors 68000
Oct 13, 2021
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Sad to see something that has potential being led to the market by Meta/FB. They've lost the trust of so many people and FB is essentially used by older demographics so who is this product for? It's expensive, led by a company that people seemingly do no trust, and in this economy those that do have the money are probably putting it elsewhere.
 
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Akrapovic

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Aug 29, 2018
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Scotland
The issue Zuck has is that Facebook is yet to actually build a good product itself. The original Facebook has become a mess. They bought Instagram, Oculus and WhatsApp. Everything they launch that is a proper in-house Facebook developed original fails. People won't pay high prices for bad products.

Also, this is not a new business model - it's the Amazon business model. Kindles and Echos are sold at cost and sometimes a loss in order to become the dominant players in that market. It pushes people to use Amazon more.
 

betterbegood

macrumors 6502
May 21, 2014
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As much as I agree with Tim Cook that Metaverse is really undefinable at this point (and still not interesting/mature enough to care about it), the Zuck Zuck has a point. He is willing to bet everything for this project to take off, and it is hard not to respect that regardless of your stance.

Apple is just an investor-driven money machine that will sell you the same hardware and design for as long as possible. This is why I think many people miss Steve who knew money followed innovation and calculated risk, not just blatantly repeating yourself. To sum it up? Zuck Zuck has a point t.
 
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