In a bid to boost the market success of its mixed-reality Vision Pro headset, Apple Inc. AAPL has added the two largest online retailers in China to its roster of supported applications.
What Happened: The Vision Pro headset, priced at $3,500, will now be supported by the native apps of Alibaba Group Holding Ltd. BABA and JD.com Inc. JD, reported Bloomberg on Friday. The apps will offer various features such as virtual test drives of Xiaomi cars and makeup simulations.
App support is seen as crucial for the success of Vision Pro, which has had a rocky start in the U.S. with Netflix Inc. NFLX opting out of creating a bespoke app.
The headset, which is set to launch in China, Japan, and Singapore on Jun. 28, has seen a significant sales premium for imported units in overseas markets but has failed to generate significant sales so far.
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Why It Matters: Apple’s expansion into the Chinese market with the Vision Pro headset comes amid several challenges. The company has been facing obstacles in its artificial intelligence push in China due to stringent regulations and rising competition from local firms like Huawei.
Additionally, Apple has reportedly been struggling to develop a more affordable version of the Vision Pro. The high price tag and lack of mainstream appeal have led to a re-evaluation of the Vision Pro’s roadmap. The company aims to make the headset more accessible by introducing a range of devices with varying price points.
Apple is also in ongoing discussions with several Chinese companies, including Baidu and Alibaba, to integrate AI functions into its devices sold in China. This is part of Apple’s strategy to navigate the complex regulatory environment and enhance its product offerings in the region.
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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