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Meta Platforms (NASDAQ:META) has likely cut its shipment forecast for the Quest 3 mixed reality headset by up to 10% due to lower-than-expected demand, a widely watched analyst said on Friday.
In a blog post, TF International Securities analyst Ming-Chi Kuo said he thinks Meta cut its shipment forecast between 5% to 10% and shipments for the first-quarter of 2024 will likely “decline significantly” quarter-over-quarter.
He added that Apple’s (NASDAQ:AAPL) Vision Pro, which is slated to launch “early next year” is “at least” between two to three years ahead of the Quest headset on a technical basis. As such, even though the devices are targeting different consumers, it’s likely that the Vision Pro’s “clear experiential advantage will influence consumers’ purchase intentions for the Quest.”
Meta did not immediately respond to a request for comment from Seeking Alpha.
The new Quest 3 headset was officially announced at Meta’s Connect developer conference in September after it was first previewed in June. The new headset will cost $499, up from the $300 Quest 2, and incorporates both virtual and augmented realities, something that Apple’s (AAPL) upcoming Vision Pro incorporates.
The Vision Pro was unveiled in June at Apple’s (AAPL) developer conference, marking its biggest entry into a new product area in nearly a decade.
In September, Kuo said he was expecting 2024 shipments of the Vision Pro to be between 400,000 and 600,000, well blow the expectation of some in the marketplace for 1M units. He also suggested that Apple (AAPL) may have already canceled the low-cost version of the Vision Pro for 2025 and pushed it back to 2027 “at the latest.”
In July, it was reported that Apple (AAPL) had cut its production forecast for the Vision Pro amid manufacturer struggles.
Apple (AAPL) CEO Tim Cook said last month the Vision Pro is on track to be released in early 2024 and that he is using it on a regular basis.
Meta (META) shares rose more than 3% on Friday while Apple (AAPL) gained more than 1%.
The new Quest 3 headset was officially announced at Meta’s Connect developer conference in September after it was first previewed in June. The new headset will cost $499, up from the $300 Quest 2, and incorporates both virtual and augmented realities, something that Apple’s (AAPL) upcoming Vision Pro incorporates.
Apple’s Vision Pro, slated to cost $3,499, was unveiled in June at its developer conference.
Meta (META) shares rose more than 3% on Friday.