Google, Meta Aim to Rival Apple with AI, Open VR OS

Key Takeaway

• Google and Meta revamp strategies to challenge Apple, with Google integrating AI into products and Meta opening its VR OS to all headset makers.
• Apple's new iPad Pro features the M4 chip, emphasizing AI capabilities ahead of WWDC 2024, showcasing a strategic shift towards AI-powered devices.
• Despite Vision Pro's dominance in mixed reality, Meta's open OS strategy could accelerate mixed-reality adoption, challenging Apple’s market position.

Rivals Revamp Strategies

Apple Inc. is facing renewed competition as its top rivals, Alphabet Inc.’s Google and Meta Platforms Inc., revamp their strategies for smartphones and headsets. Google has undergone its most significant management overhaul since Sundar Pichai became CEO, aiming to more deeply integrate AI into its products and mimic Apple’s product development model. This shift is seen as an attempt to improve the integration of hardware, software, and services, moving away from the siloed approach that has characterized Google’s efforts in developing its own phones. Rick Osterloh, Pixel hardware chief, has been elevated to oversee the Android operating system, signaling a new priority for Google’s devices.

Meta Platforms announced a major strategy shift by opening its virtual reality operating system to any headset maker, similar to the approach used by Windows and Android. This move could position Meta to compete more effectively in the mixed-reality market, potentially outpacing Apple’s Vision Pro by making its Meta Horizon OS the household name in mixed reality.

Apple's AI Hardware Shift

Apple is set to introduce a new iPad Pro, marking the company's shift into AI hardware. The new iPad Pro is expected to feature the M4 chip, emphasizing Apple's focus on AI capabilities. This move comes as part of Apple's broader strategy to position its devices as AI-powered, in response to the growing AI craze in the tech industry. The upcoming iPad Pro, along with other M4 chip-equipped devices, is anticipated to showcase new AI functionalities, setting the stage for Apple's presentation of its AI chip strategy at the Worldwide Developers Conference (WWDC).

Vision Pro and Market Dynamics

Apple's Vision Pro, a mixed-reality headset, is currently the preeminent device in its category, despite its high price and slowing sales. Apple plans to introduce visionOS 2.0 for the Vision Pro, focusing on international expansion, including entering the Chinese market. However, the mixed-reality industry is still in its early days, and it's uncertain what devices might eventually replace smartphones. This uncertainty provides an opportunity for Apple's rivals to make their mark, especially as Meta opens its operating system to other manufacturers, potentially accelerating the adoption of mixed reality.

AI Integration and Product Launches

Apple is preparing for a series of product launches and events, including the introduction of new iPad models and the announcement of its fiscal second-quarter earnings. The "Let Loose" event on May 7 will unveil the new iPad Pro and iPad Air, alongside updates to the Apple Pencil and Magic Keyboard. Additionally, Apple's WWDC 2024 will showcase the company's renewed AI strategy, with significant updates expected for iOS 18 and other operating systems. These developments highlight Apple's commitment to integrating AI across its product lineup, aiming to offer features that are deeply integrated and offer enhanced privacy and security compared to rival systems.

Management Quotes

• Sundar Pichai, CEO of Alphabet Inc.:

  "This is an attempt to mimic Apple’s product development model."

• Rick Osterloh, Pixel hardware chief at Google:

  "Osterloh has essentially now become the quasi-CEO of Google products. He has dominion over all of Google’s non-internet products."