Kuo: Meta reduces Quest 3 production by up to 70 percent

Analyst Ming-Chi Kuo states that Meta has significantly reduced production of Quest 3 headsets. The company originally wanted to produce 7 million units this year, but that has reportedly been adjusted to between 2 and 2.5 million units.

According to the market analyst This decline has to do with a decreased demand for the VR headset. According to Meta’s expectations, demand would be up to 70 percent lower than expected. The company expects to sell a maximum of 2.5 million units this fall and according to Kuo, only one million units are expected to be sold next year. Across the entire Quest product line, the analyst predicts that demand in 2023 will decrease by 50 percent compared to last year to around 3.5 million units.

Meta’s other HMD product series, the Ray-Ban smart glasses, are experiencing a similar trend, according to Kuo. The expected production requirement for the second generation of Ray-Ban glasses would be 25 percent lower than the original Stories Smart Glasses. The source adds that the latter product also sold considerably less than expected, with around 400,000 units. Based on this information, Kuo predicts that Meta’s headset department will make a significant loss.

Meta announced the Quest 3 headset a few weeks ago as a gaming and productivity tool. Unlike previous versions of Meta’s VR glasses, the company emphatically does not focus on the metaverse with the Quest 3. Despite this approach, the analyst states that the company should expect disappointing sales.