For Vision Pro, Category Reshaping or Creation Might Have Equal Outcomes

The debate over what to call Apple’s Vision Pro--either “spatial computing” or “virtual reality headset” reflects an effort by Apple to create a new product category that is distinct from extended reality “headsets.”

Spatial computing might be defined as devices or technologies that allow users to interact with computers in a three-dimensional space. 

This might be done through the use of head-mounted displays, augmented reality glasses or other devices that track the user's position and orientation in space.

Using that definition, all xR headsets are spatial computing devices. Apple is trying to avoid creating a product within the existing category, but to create a new category. 

Some might argue this tactic is tried and true marketing, if difficult. 

source: SaaStr, Andres Botero 

Category creation essentially entails creating a business moat around a new product, separating it from possible competitors. It means creating “different” rather than “better” products. 

So Apple hopes “spatial computing” will separate it from “VR headset” competitors. Financial rewards tend to follow when a firm can succeed in creating a new product category, often because a firm comes to dominate the category. 

We do not know yet whether spatial computing develops as a way to handle person-to-machine interfaces on a generalized or specialized basis, beyond those instances where three-dimensional space is part of the computation.

For example, spatial computing could become important for gaming, internet of things or training, but not replace other computing activities such as productivity suites, which are two dimensional. 

Probably most observers would presently argue that spatial computing is a specialized use case that augments, and does not replace, many other general computing use cases. It is quite unclear whether three-dimensional capabilities add much value for word processing, messaging, presentation or spreadsheet creation and use, for example. 

Apple might see a way to create a path towards an augmentation of its core product lines rather than a replacement. In other words, limited success rather than “full” success might be the desired outcome, somewhat on the pattern of the Apple Watch extending the value of the iPhone, rather than replacing that device. 

Many will remain unconvinced Apple can actually create a new category of computing appliances, but arguably many more will admit the possibility that Apple eventually could reshape the existing category of VR headsets. 

After all, the iPod reshaped the mobile music playback device market and the iPhone reshaped the mobile phone market. Some might also include the personal computer and tablet as among product categories Apple reshaped, if not created. 

source: Clear Purpose

As a practical matter, it might not so much matter whether Apple is able to create a new category or reshape it. The iPod recreated the digital music player market, as the iPhone recreated the mobile phone market. The market outcomes might not have been markedly different from creating a whole new category of devices.