In a bid to challenge Apple Inc.'s (NASDAQ:AAPL) flagship products, the iPhone and Vision Pro, top competitors, Meta Platforms Inc. (NASDAQ:META) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), are reportedly making significant changes to their strategies.
What Happened: In his latest weekly "Power On" newsletter, Bloomberg columnist, Mark Gurman said that the Mark Zuckerberg-led company's decision to open up its virtual reality operating system to all headset manufacturers can be seen as a direct challenge to Apple's closed ecosystem.
"That's the same approach that made Windows the dominant computer operating system and Android the most used smartphone software," said Gurman, adding, "It's also a potential opportunity to get a jump on Apple."
Meanwhile, Google has restructured its management, appointing Pixel hardware chief Rick Osterloh to oversee the Android operating system. For years, Osterloh and the Pixel team have faced pressure to generate greater revenue from their devices.
However, within the Android team, the Pixel division was perceived simply as another client, akin to Samsung Electronics Co., rather than being recognized as an integral component of the company's operations.
"The Google move mirrors Tim Cook's first major management overhaul in 2012, when he elevated services chief Eddy Cue and then-macOS software leader Craig Federighi to broader roles, while pushing out former iOS head Scott Forstall," Gurman stated.
He went on to note another conceivable factor contributing to the shift at Google — the tech giant's struggle to establish a presence in the mixed-reality realm. Despite ongoing efforts in augmented reality development over the years, Google noticeably lags behind Apple and Meta in this arena.
Why It Matters: Apple's Vision Pro, a mixed-reality headset, has been a topic of discussion in the tech industry. Despite its high price, the device has been praised for its advanced technology.
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Meta CEO Mark Zuckerberg has been critical of the Vision Pro. During Meta's first-quarter earnings call, he described the headset as "fashionable AI glasses without a display." On the other hand, OpenAI CEO Sam Altman lauded it as the "second most impressive tech since the iPhone" by OpenAI co-founder Sam Altman.
Vision Pro has also faced criticism for its high price, with some users returning the device due to design and performance issues, but the tech giant has high hopes for the headset, considering their plans for its international expansion.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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