The market is struggling for Apple.

Despite strong sales in the third quarter, the Apple Vision Pro did not contribute much to the stagnant virtual reality headset market.

Apple Vision Pro glasses. Photo: New York Times .

According to research firm Counterpoint Research , global virtual reality (VR) headset sales in the third quarter decreased by 4% year-on-year and by 16% compared to the previous quarter.

This marks the third consecutive quarter of decline in the VR headset market. Analysts cite several reasons, including a 50% drop in the wired VR headset segment, while the standalone VR headset market grew by only 14%.

Meta remains the global VR headset market leader with a 65% market share in the third quarter. However, this figure is lower than the previous quarter due to a decline in Meta Quest 3 sales, while users are waiting for the more affordable Meta Quest 3S.

Compared to the second quarter, Apple's Vision Pro sales doubled in the third quarter after launching in several international markets, including China, Europe, and Asia- Pacific .

In the third quarter, Apple ranked third in the VR headset market with a 9% market share. However, Apple's recovery may not last, and Vision Pro sales are expected to decline in the fourth quarter due to waning global appeal.

According to Counterpoint Research , the international market will account for approximately 90% of Vision Pro sales in the second half of 2024.

Pico ranked second with an 11% market share. The brand's VR headset sales decreased by 2% year-on-year, but increased by 6% compared to the previous quarter, thanks to the launch of the Pico 4 Ultra in China and Europe.

In its home country of China, Pico maintains its dominant position thanks to partnerships with local businesses in the tourism and entertainment sectors.

Following closely behind Apple is Sony with an 8% market share. The company's VR headset sales in the third quarter decreased 29% year-on-year, but doubled compared to the previous quarter.

In the third quarter, the Japanese company launched an adapter to connect the PlayStation VR2 to a computer, while also stepping up product promotion in North America and Europe.

Meanwhile, DPVR manufacturer recorded a 67% year-on-year growth thanks to strong demand from the enterprise market.

Global VR headset market share in Q3. Image: Counterpoint Research .

Despite incorporating many new technologies, the VR headset market still faces technical challenges such as smaller size, improved screen quality, longer battery life, richer content, and more affordable pricing.

Rumors suggest Apple is developing OLED displays for a cheaper version of its Vision Glasses. This technology offers cost savings compared to Micro OLED, but balancing price, screen size, resolution, and user experience remains a challenge for Apple.

According to Counterpoint Research , the VR headset market is unlikely to see major breakthroughs in the coming years. The bright spot may come from the augmented reality (AR) segment, with the launch of the Meta Orion and Snap Spectacles '24.

“These products highlight the industry’s efforts to combine advanced functionality with user-friendly design, paving the way for truly immersive AR entertainment content,” said analysts at Counterpoint Research .

Another opportunity arises from the AI-integrated AR glasses market. Companies like Rokid and INMO have already integrated AI generation into AR glasses in 2024, with several other brands expected to join from 2025. The Android XR operating system could also boost this market.