Zuckerberg: Apple “charges as much as possible” for hardware, but Meta is willing to sell at a loss to grow the Metaverse

Meta CEO Mark Zuckerberg has criticized Apple’s pricing strategy, claiming that the tech giant typically charges “as much as possible” for hardware, while Meta will take a different approach by offering products like its new $1500 AR/VR headset sold at a “break-even” price point, or even a loss in some cases (via Business Insider).

In a podcast interview following the launch of Meta’s new Quest Pro headset, Zuckerberg said that while it’s natural for hardware companies to make a profit on product sales, Apple tries to bill customers as much as possible . In contrast, Zuckerberg said Meta will take a different tack with its portfolio of hardware products, claiming that his company may not derive a profit from some of its sales, instead relying on revenue generated from software and services that are offered in the Metaverse.

I think the business model will be disruptive because it’s usually people who build hardware and try to make a profit out of it, while if you’re Apple you build hardware and charge as much as you can for it. I think someone comes into the room and basically says, “We’re going to build the best hardware in the room and basically sell it at a break-even point and in some cases maybe even slightly at a loss to basically contribute to that.” “to grow the ecosystem with the business model that the revenue is essentially generated through software and services”, this business strategy I think is aligned with the mission of basically connecting people and having people there because if you want to build a social experience, you have to have the people there.

This week, Meta announced the Quest Pro, its latest AR/VR headset for what it calls the Metaverse. At $1500, the Quest Pro is the high-end successor to the Meta Quest and, according to Meta, has a more comfortable design, more advanced display technology, and sensors that can read a user’s emotions and facial movements. Apple’s AR/VR headset is rumored to be announced in January, and you can learn more about it by checking out our AR/VR roundup.