“ASPs for augmented reality (AR) headsets have almost always been above this price point, but ASPs for VR, MR, and ER headsets have typically been lower,” he said. “Apple’s Vision Pro drove ASPs higher for MR headsets, but the addition of lower-cost devices from Meta and HTC have kept those ASPs from going much higher. Meanwhile, there were many devices for VR and ER priced below $500.”
Return to growth
Looking ahead, Llamas said that IDC is anticipating ASP erosion across all products: “Because the overall market is still in its early stages with more expensive first- and second-generation devices, prices will be high even as early adopters buy them. In order to reach scale in the mass market, vendors will need to reduce prices on later and upcoming devices.”
IDC is forecasting that “headset shipments will return to growth later this year with volume growing 7.5% over 2023. Newer headsets and lower price points will help with the turnaround expected later this year. Beyond that, headset shipment volume is expected to see a compound annual growth rate (CAGR) of 43.9% from 2024–2028.”
