Apple’s headset could bring ‘X-factor’ for xR adoption
SYDNEY, AUSTRALIA – The launch of an Apple headset and the development of Extended Reality (xR) technology could boost the uptake of head-wearable devices in Australia, as consumers seek new ways to enhance their lifestyles, health and entertainment, according to new research from Telsyte, an Australian emerging technology analyst firm.
The Telsyte Australian Smartphone & Wearable Devices Market Study 2023 found that smart wearables grew in popularity with smart wrist and ear devices growing in adoption, with 36 per cent and 29 per cent population penetration respectively.
However, Telsyte expects head devices (headsets and glasses) to gain momentum with new powerful xR chipsets, partnerships such as the Qualcomm, Google and Samsung alliance, new and improved applications (for productivity, fitness and education) and highly anticipated products and games in 2023.
The xR market has been driven largely by enterprises, gamers and tech enthusiasts so far, but Telsyte’s consumer survey shows that more than one in four (27%) Australians are enthusiastic about its possibilities. This is three times that amount of individuals that are current adopters, about 1.5 million (6%) Australians at the end of 2022, a small rise of 4 per cent rise over the previous year.
Those interested in xR are drawn to various applications, especially entertainment, including games (38%), virtual tours (33%) and videos (31%). Sports, health and fitness applications also appeal to more than 1 in 5 (22%) consumers.
Manufactures have for years grappled with the balance between weight, tethering, comfort, and safety. The survey also showed that the majority (91%) of Australians prefer a wireless headset that works without cables. Telsyte believes battery life limitations are still a major impediment to smart headset adoption, especially for longer usage scenarios such as gaming and long-format video. This echoes the sentiment for wrist wearables, where battery life has been rated the most important selection criterion in the last two years.
The wearability of xR devices is another key factor vendors have been focusing on, with better weight and design optimisation. When selecting an xR headset, survey respondents say comfort and wearability measures are important to them, such as fitting of the headset (62%), weight (60%) and the ability to adjust lenses for their prescriptions (50%).
In addition to a “preference for real-world interactions”, the research found that those who are not interested in xR technology cite a lack of games and apps (24%), and the lack of interest among their friends and families (19%).
Apple could be a game-changer for xR adoption with a loyal user base and hungry developer ecosystem
Telsyte believes the potential release of Apple’s xR headset could accelerate the adoption of head wearables, alongside other new xR headsets, such as HTC’s VIVE XR Elite and Meta’s Quest Pro.
More than half (57%) of Australians aged 16 and older are already familiar with the Apple ecosystem and use different Apple devices and services that could complement and enhance the overall experience of an Apple headset.
Apple has a proven track record of attracting app developers and introducing successful new platforms. Telsyte’s latest measure found 37 per cent of Australian Apple users are considered loyal (using five or more different Apple products and services), up from 20 per cent two years ago.
Telsyte believes that this loyal base, which tends to buy more Apple devices and services, will be the early supporters of Apple’s ambitions in immersive technologies.
Apple is also well positioned to attract app developers to any new device category. Telsyte estimates that Apple’s App Store already has more than 140,000 AR apps for its iPhones and iPads, which could work with a xR headset at launch or soon after.
Those keen on xR are willing to pay an average of $733 for a headset, with 20 per cent ready to pay over $1,000. However, the Apple headset is expected to be significantly more expensive and designed initially for developers.
If Apple only releases a developer headset model in 2023, Telsyte estimates that it could sell between 10,000 and 40,000 units in Australia in the first year, depending on availability, price and the appeal to new enthusiasts. Telsyte expects Apple to follow up with a more affordable version, suited to smaller budgets as early as 2024, which could take off.
Telsyte forecasts the number of Australians using an xR headset could more than double to 3.3 million (12%) by 2027 based on scenario analysis.
“Introducing a new wearable device platform in 2023 would help energise Apple’s loyal developers,” says Foad Fadaghi, Principal Analyst and Managing Director at Telsyte.
“The key factor to Apple’s success or failure in xR will be third-party developers and application monetisation” Fadaghi says.
Extended Reality - xR is the collective term used to describe various immersive technologies including virtual reality (VR), augmented reality (AR), and mixed reality (MR).
For further information on the study or media enquiries contact:
Foad Fadaghi
Managing Director
Tel: 1800 313 142
Email: ffadaghi@telsyte.com.au
Alvin Lee
Senior Analyst
Tel: 1800 313 142
Email: alee@telsyte.com.au
The Telsyte Australian Smartphone & Wearable Devices Market Study 2023 is a comprehensive study that provides subscribers with:
Smartphone market sizing estimates, platform and vendor market shares and forecasts
Smart wrist-based wearables market sizing estimates, platform and vendor market shares and forecasts
Smart hearables market sizing estimates, platform and vendor market shares and forecasts
xR headset market sizing estimates and forecasts
End user trends across devices, application usage, platforms and operators
Purchase intentions and acquisition channels
Strategic analysis of recent market trends and developments
Telsyte measures smart wearable devices in the Telsyte Australian Smartphone & Wearable Devices Market Study 2023 as computing accessories:
Smart wrist wearables: worn on a user’s wrist typically paired and controlled via a smartphone. Examples includes products from Apple, Asus, Fitbit, Fossil, Garmin, Huawei, iFit, Misfit, Oppo, Samsung, Skagen, SPACETALK, TomTom, Withings and others.
Smart hearables: smart earbuds and headphones that support digital assistants and are typically paired with a smartphone. Examples include Apple Airpods, Samsung Galaxy Buds, Microsoft Surface Headphone and Google Pixel Buds.
xR headsets: VR, AR or MR headsets such as HTC Vive XR Elite, Meta Quest Pro, Microsoft Hololens, Pico 4, Sony PlayStation VR 2 and Steam Valve Index.
In preparing this study, Telsyte used:
Telsyte’s annual Digital Consumer survey conducted during January 2023 with a representative sample of 1,036 respondents, 16 years and older.
Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.
Financial reports released by service providers, manufacturers and retailers.
Ongoing monitoring of local and global market and vendor trends.
Analyst reviews of leading smartphone and wearable devices.
Editor’s note:
Telsyte measures sales of devices (“sell out”), not shipments or sales to retailers or carriers (sometimes called “sell-in”). Telsyte believes this is a more accurate measure of performance of products in a marketplace. Telsyte does not rely on disclosure from vendors or general assumptions made for large multinational companies that do not release local market data. Telsyte uses a comprehensive methodology that includes surveys of consumers, discussions with vendors, carriers and their partners, retailers, and financial analysts. In addition, public financial results from manufacturers and carriers are used. Telsyte tests a wide range of products in real life usage scenarios and conducts satisfaction and repeat purchase surveys with large and representative samples of Australian smart device users. Telsyte is a pioneer in measuring and reporting smartphone sales in Australia and has been providing insights on mobile technologies since 2006.
Telsyte currently covers head wearables from HP, HTC, Lenovo, Magic Leap, Meta (Oculus), Microsoft, Pico, Sony, Vajor, Valve and others.
About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC Technology. For more information visit www.telsyte.com.au
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