Tech giants Google and Samsung are gearing up to enter the competitive landscape of wearable headsets. In a strategic alliance, the two companies are set to unveil a mixed-reality headset designed to rival Apple's Vision Pro and Meta's Quest 3. This collaboration will see Samsung take the lead in manufacturing the headset, which will be driven by an innovative Android operating system, thus challenging Meta's market dominance. Although the release date is targeted for 2025, the pricing details have yet to be disclosed. Industry analysts anticipate that Samsung may aim to offer a more affordable option compared to Apple's steep $3,499 price point for the Vision Pro, with Meta's Quest 3 currently retailing at $500.

Marking a significant step in the wearable technology sector, the Samsung headset will be the inaugural product to harness the new Android operating system for XR (Extended Reality), before it becomes accessible to other manufacturers for their devices. The Android for XR platform, which encompasses a spectrum of virtual and augmented reality technologies, has been a collaborative effort between Google, Samsung, and Qualcomm. This platform is poised to empower a variety of hardware devices, including headsets and smart glasses.

Ted Mortonson, a managing director at Baird, has indicated that the forthcoming headset and its underlying operating system are pivotal for Google and Samsung to secure a share in the wearable consumer technology market and to prepare for the forthcoming era of consumer AI products. Mortonson emphasized that the partnership is a direct challenge to Apple, leveraging Google's advanced AI capabilities and Samsung's reputation for reliable consumer technology hardware.

According to Mortonson, Apple's Vision Pro has not achieved the level of success the company had anticipated, thus creating an opportunity for Google and Samsung to make their mark. Scott Kessler, the global sector lead for technology at Third Bridge, has noted that while Meta is perceived as a market leader with its Quest 3 and strategic collaborations with Rayban, the relatively niche status of headsets allows for market experimentation. "We're in the early stages," Kessler remarked.

Dan Ives, managing director and senior equity analyst at Wedbush Securities, has stated in an email that Google is likely to position itself to compete with Meta by focusing on the mass consumer market. "This is a strategic move by Google to capture market share from Apple and Meta and to signal their intent not to remain mere spectators in this market," Ives said.

Mortonson also highlighted that this development has been a long time in the making for Google, which pioneered wearable technology with Google Glass in 2013, a product that was discontinued in 2023, and a VR headset called Daydream, released in 2016, which also faced discontinuation. Since acquiring DeepMind, an AI lab, in 2014, Google has invested heavily in developing its generative AI capabilities, culminating in the launch of Gemini, its core AI offering, in 2023.

The new Android system is set to integrate Gemini, bringing features such as an AI voice assistant and access to all Android applications directly to the headset. Won-Joon Choi, the head of research and development at Samsung's mobile business, expressed excitement about the collaboration with Google in unlocking new XR products. "XR has rapidly evolved from a distant promise to a tangible reality," Choi stated. "We believe it has the potential to unlock new and meaningful ways to interact with the world, resonating with your everyday life and transcending physical boundaries."

It was anticipated that Google would eventually challenge Apple and Meta in the wearable tech arena, given the potential for growth in AI products, as noted by Kessler. For now, he suggests that this type of headset is more of a "nice to have" rather than a "need to have." "We've been reminded over the last year that, despite the impressive capabilities of these products, there isn't a standout feature that makes these products indispensable purchases, at least not yet," he said. Kessler also referenced the release of Google Glass in 2013 as a moment of significant excitement for a wearable tech product that eventually waned.

Baird's Mortonson pointed out that the real intrigue lies in the Android XR operating system and Google's push to monetize its AI products, a competition that will intensify as major tech companies vie for market share. "I believe these companies are all positioning themselves to capitalize on opportunities as they arise," Kessler added.