'Weak Demand' for VR and AR Causing Concerns for Companies Investing in the Technology

applevrheadsetSales related to virtual reality and augmented reality products "have been weaker than expected," according to data collected by a number of market research firms and shared by DigiTimes.

A lack of content and expensive prices, specifically for VR headsets, are two factors said to be at the center of the weak demand for the technology as 2016 closes out. The results could potentially have a negative effect on companies investing in VR and AR technology development, including Apple.

The market watchers noted that Sony's PSVR, Google's Daydream View, HTC's Vive, Samsung Electronics' Gear VR, and the Oculus Rift all ended up with sales figures weaker than their initial expectations. Coming out of Black Friday and Cyber Monday last week, the research firm SuperData noted that VR headsets have been "the biggest loser" this holiday season.

Because of the slower-than-expected consumer adoption of each technology, companies rumored to be investing in VR and AR products are believed to be feeling "pressured" about such investments. Specifically, HTC was noted as "seeing decreasing share in the worldwide smartphone market" while waiting for its Vive headset to contribute profits.

Many research firms' numbers also have shown that VR product sales in 2016 have been weaker than expected due to lack of content and high product costs. VR/AR technologies also require more improvement in order to stimulate demand from both the consumer and enterprise sectors.

It will take more time before the VR/AR market may begin enjoying robust growth, and such a slower-than-expected development is putting pressure on firms that have invested resources into related development, such as HTC, which is seeing decreasing share in the worldwide smartphone market while its Vive has yet to start contributing profits. The year of 2017 could be a difficult one for HTC.

Although Apple's relation to such technology has leaned more towards an AR experience -- most recently suggesting a feature that would be integrated into the iOS camera app -- the company has been rumored to be developing a full-on VR headset as well. If included in pre-existing apps within iOS, an augmented reality experience by Apple would be less risky for it to undertake, but some rumors also point towards a separate product category coming down the line.

It's unclear when Apple's decade-long investment in VR/AR development might come to fruition in a consumer product, but some basic AR experiences have already proven popular on the company's devices, including this summer's gaming phenomenon Pokémon Go.

Related Roundup: Apple Vision Pro
Buyer's Guide: Vision Pro (Buy Now)
Related Forum: Apple Vision Pro

Popular Stories

iOS 26 Feature

iOS 26.1 to iOS 26.4 Will Add These New Features to Your iPhone

Saturday October 18, 2025 11:00 am PDT by
iOS 26 was released last month, but the software train never stops, and iOS 26.1 beta testing is already underway. So far, iOS 26.1 makes both Apple Intelligence and Live Translation on compatible AirPods available in additional languages, and it includes some other minor changes across the Apple Music, Calendar, Photos, Clock, and Safari apps. More features and changes will follow in future ...
ios 26 1 liquid glass opaque

iOS 26.1 Beta 4 Lets Users Control Liquid Glass Transparency with New Toggle

Monday October 20, 2025 10:57 am PDT by
With the fourth betas of iOS 26.1, iPadOS 26.1, and macOS 26.1, Apple has introduced a new setting that's designed to allow users to customize the look of Liquid Glass. The toggle lets users select from a clear look for Liquid Glass, or a tinted look. Clear is the current Liquid Glass design, which is more transparent and shows the background underneath buttons, bars, and menus, while tinted ...
iphone air thickness

Apple Said to Cut iPhone Air Production Amid Underwhelming Sales

Friday October 17, 2025 8:29 am PDT by
Apple plans to cut production of the iPhone Air amid underwhelming sales performance, Japan's Mizuho Securities believes (via The Elec). The Japanese investment banking and securities firm claims that the iPhone 17 Pro and iPhone 17 Pro Max are seeing higher sales than their predecessors during the same period last year, while the standard iPhone 17 is a major success, performing...
iOS 26

iOS 26.0.2 Update for iPhones Coming Soon

Friday October 17, 2025 7:35 am PDT by
Apple's software engineers continue to internally test iOS 26.0.2, according to MacRumors logs, which have been a reliable indicator of upcoming iOS versions. iOS 26.0.2 will be a minor update that addresses bugs and/or security vulnerabilities, but we do not know any specific details yet. The update will likely be released by the end of next week. Last month, Apple released iOS 26.0.1,...
Apple iPad Pro hero M5

New iPad Pro Has Six Key Upgrades Beyond M5 Chip

Saturday October 18, 2025 10:57 am PDT by
While the new iPad Pro's headline feature is the M5 chip, the device has some other changes, including N1 and C1X chips, faster storage speeds, and more. With the M5 chip, the new iPad Pro has up to a 20% faster CPU and up to a 40% faster GPU compared to the previous model with the M4 chip, according to Geekbench 6 results. Keep in mind that 256GB and 512GB configurations have a 9-core CPU,...
iPhone Siri Glow

Some Apple Employees Have 'Concerns' About iOS 26.4's Revamped Siri

Sunday October 19, 2025 7:39 am PDT by
iOS 26.4 is expected to introduce a revamped version of Siri powered by Apple Intelligence, but not everyone is satisfied with how well it works. In his Power On newsletter today, Bloomberg's Mark Gurman said some of Apple's software engineers have "concerns" about the overhauled Siri's performance. However, he did not provide any specific details about the shortcomings. iOS 26.4 will...
HomePod mini and Apple TV

Apple's Next Rumored Products: New HomePod Mini, Apple TV, and More

Thursday October 16, 2025 9:13 am PDT by
Apple on Wednesday updated the 14-inch MacBook Pro, iPad Pro, and Vision Pro with its next-generation M5 chip, but previous rumors have indicated that the company still plans to announce at least a few additional products before the end of the year. The following Apple products have at one point been rumored to be updated in 2025, although it is unclear if the timeframe for any of them has...
maxresdefault

Here's How the iOS 26.1 Transparency Toggle Changes Liquid Glass

Monday October 20, 2025 1:55 pm PDT by
With the fourth beta of iOS 26.1, Apple added a toggle that makes Liquid Glass more opaque and reduces transparency. We tested the beta to see where the toggle works and what it looks like. Subscribe to the MacRumors YouTube channel for more videos. If you have the latest iOS 26.1 beta, you can go to Settings > Display and Brightness to get to the new option. Tap on Liquid Glass, then...
m4 macbook air blue

M5 MacBook Air Coming Spring 2026 With M5 Mac Studio and Mac Mini in Development

Thursday October 16, 2025 3:57 pm PDT by
Apple plans to launch MacBook Air models equipped with the new M5 chip in spring 2026, according to Bloomberg's Mark Gurman. Apple is also working on M5 Pro and M5 Max MacBook Pro models that will come early in the year. Neither the MacBook Pro models nor the MacBook Air models are expected to get design changes, with Apple focusing on simple chip upgrades. In the case of the MacBook Pro, a m...

Top Rated Comments

magicschoolbus Avatar
116 months ago
no one wants to strap these things to their face...
Score: 30 Votes (Like | Disagree)
Mr. Dee Avatar
116 months ago
AR & VR are just capitalism creating solutions looking for a problem. Its where Steve Jobs is missing significantly. The guy just had a knack for creating things we wondered how we ever lived without them. Pioneering the graphical user interface - it was just ridiculous to think we could really type in archaic commands for the rest of our lives. If Steve did not start that fire, Bill Gates would be pushing MS-DOS 16.0 on us right now.

He pushed the need to make computers look good for a change, its not about dull, beige boxes sitting in a corner. The iMac really inspired the industry to take aesthetics seriously and create computers that didn't just focus on beauty, but functionality too.

Honestly, could you imagine carrying around 60 CDs with you in 2016? The iPod was just a logical means of carrying and easily accessing your music wherever, whenever you wanted.

Look at smartphones pre-2007; they were the hottest things, yet I never desired to own one. When Jobs demoed the iPhone in 2007, it was a eureka moment, you immediately knew this is what you wanted in a phone for a change.

The MacBook Air was a revision of what an everyday notebook computer for the masses was all about. Initially an expensive luxury for a few, it would eventually come down in cost due to efficiency in manufacturing and economies of scale. Which computer do you think is the most popular among Mac users today? Its the MacBook Air of course. Certainly, no one would predict that in 2008.

Steve Jobs rightly saw that, not everyone honestly needs the full power and complexity of a MacBook Pro, Air or MacBook. Hence the iPad, because we all have that friend or family member who simply just wants to check email, browse the web, use social media, basically just consume content. An obvious market was there all along and it was tapped into.

The iPhone 4 was really about making a better smartphone: Retina display, FaceTime, A4 performance etc.

The Retina MacBook Pro which was probably in the pipeline focused on what we are we doing with computers and what are we planning to do with them 5 years from now. When was the last time you really used an optical drive. If you are a creative/professional user, what do you want out of staring at your screen all day. So, there was obviously a market.

The iPhone 6 Plus was really about tapping into market demand, responding to the competition and this was obviously a smart strategic move. We don't know if the iPhone 6 designs and the iPad Mini were ever blessed by Steve Jobs, but they did find a niche.

When we arrive at present day, we see more solutions looking for problems. We now have a glorified notification wrist band. The rest of the industry is gung ho on stuff that honestly has no mass market appeal. AR/VR are not a recent holy grail, this is something the industry has been tackling for ages.

I am sure Steve Jobs had access to it before anyone. If he saw a potential for mass market appeal, he would have already designed a vision for where it would make sense when the technology was ready. He didn't and he didn't tackle everything, like the TV and smart watch, home automation or vehicles. He was narrow in his focus. Not denying he experimented with the ideas, but that's not different from keeping x86 versions of OS X in development for 5 years without anyone outside of Apple knowing.

I don't know what Jobs would have done today (I wish he had done the surgery from early then we would have found out). Its just, we are going through a period of doldrums right now. I sense, if we were to know the real truth, everybody: Microsoft, Facebook, Apple and Google are all panicking. They are throwing everything at the wall hoping it sticks but the reality is, we are back to the days of 1985 to 1996. The industry is truly rudderless.

One of the obvious things you learn from Steve Jobs and Silicon Valley is that engineers are at their core tasteless and talentless. Jobs pragmatism and lack of ability to write code balanced things out, not to mention the vision and logical common sense. This gave Jobs the ability to see both sides of the coin and to really use it to put both sides under manners, the engineers and the consumers. This is something the industry lacks right now. As much as Jony Ive might have been Jobs soulmate at Apple, he is consumed too much by design and aesthetics and fails to balance it out with being practical.
Score: 12 Votes (Like | Disagree)
daanodinot Avatar
116 months ago
Demand is weak because the technology is nowhere near good enough to be successful. These things take time.
Score: 10 Votes (Like | Disagree)
spiderman0616 Avatar
116 months ago
Technology is moving faster than the human population can absorb it. There is a threshold.
I have Playstation VR, and it is absolutely fantastic. I have been using it almost every night for the last month, and it makes gaming so much more fun and immersive. However, I agree with your statement. There are a lot of people clamoring for tech to move faster faster faster, but I don't think the general population is ready. Smartphones, tablets, and laptops are still what people want, even if there's been a slowdown in how many of those items people are buying.

We are at the point where we can get all the information we need, create all the content we need to create, and do all the work we need to do on the devices we already have. People should remember that when they tear into Apple for not bombarding the market with brand new device categories every 6 months. The every day ordinary consumer has had enough for now.

I will stick to my guns on VR though--it is fantastic tech, even in its early stages. I really have enjoyed it so far.
Score: 10 Votes (Like | Disagree)
jayducharme Avatar
116 months ago
no one wants to strap these things to their face...
I think this is the main problem. The gear is still to bulky and uncomfortable. When VR can be achieved with minimal or no headgear (certainly a huge challenge), then it will see wider adoption. Cook was right: AR is the way to go, since it can be adapted into a variety of technologies.
Score: 8 Votes (Like | Disagree)
maflynn Avatar
116 months ago
I think the technology is so new, people are unsure where it fits in. Both for consumer usage, but also in a business setting.
Score: 4 Votes (Like | Disagree)