According to Zhitong Finance APP, Samsung Electronics (SSNLF.US) officially launched its Galaxy XR extended reality (ER) headset on Tuesday. Facing the nascent and uncertain &#34;face computing&#34; emerging market currently dominated by Meta (META.US) and Apple (AAPL.US), Samsung hopes to leverage Google's (GOOGL.US) artificial intelligence (AI) capabilities to make strides in this field.
It is understood that the appearance of this headset is similar to products from companies like Meta, priced at $1,799, which is about half the price of Apple's Vision Pro headset. This is the first product in a series of new devices driven by the Android XR operating system and AI, resulting from Samsung's long-term collaboration with Google and Qualcomm (QCOM.US).
Sharham Izadi, Vice President of Google's augmented reality (AR)/mixed reality (XR) division, stated in an interview before the product launch: &#34;We have a long way to go in terms of other devices and product forms.&#34;
Company executives revealed that Samsung will soon launch lighter smart glasses, but did not disclose further details. Previously, Samsung announced partnerships with the American eyewear brand Warby Parker (WRBY.US) and the South Korean high-end eyewear brand Gentle Monster.
Driven by AI technology, the race to find new device forms for entertainment and computing has sparked fierce competition among major tech giants. Currently, Meta holds an absolute dominant position in the VR headset industry with about 80% market share, followed by Apple.
ChatGPT developer OpenAI is also actively entering this market, having spent $6.5 billion in May to acquire iPhone designer Jony Ive's hardware startup io Products, aiming to explore hardware devices in the AI era.
Jay Kim, Executive Vice President of Samsung's mobile division, stated that Samsung has been researching the extended reality field for the past decade, but only actively approached Google about four years ago to jointly develop this project, codenamed &#34;Moohan&#34; (meaning &#34;infinite&#34; in Korean). He mentioned at a briefing held in Seoul: &#34;We have been pondering when to bring the product to market, and after considering various factors such as technological evolution and market conditions, we believe now is the best time.&#34;
Leveraging Google's AI Advantage
The highly anticipated Samsung Galaxy XR headset was first unveiled last year, integrating virtual reality (VR) and mixed reality (MR) functionalities. The device allows users to immerse themselves while watching videos on platforms like YouTube, playing games, or browsing images, while also enabling interaction with the surrounding environment.
The latter functionality benefits from Google's Gemini service, which can analyze what users see and provide routes or object-related information by tracking and circling real-world objects with their fingers.
In interviews last week, executives from both Google and Samsung stated that although the ER headset has yet to spark interest among mainstream consumers, the comprehensive application of Google's powerful multimodal AI capabilities (which can process various data types such as text, images, and videos) in the device will provide significant support
This software capability has not yet been demonstrated by Apple, even though Apple has launched a new version of Vision Pro equipped with a more powerful chip.
&#34;Google's re-entry will change the landscape of the ecosystem,&#34; said Anshel Sag, chief analyst at Moor Insights &amp; Strategy. According to some estimates, Google's software adds $1,000 in value to the device. &#34;Google hopes users will fully experience all the features of Gemini while using this headset.&#34;
Samsung and Google stated that users purchasing the device this year will receive a range of free services, including 12 months of Google AI Pro access, YouTube Premium, Google Play Pass, and other professional XR content.
Executives mentioned that when Apple releases its Vision Pro headset in 2024, the prototype of this AI-enhanced headset will be ready. They aim to create a new immersive experience while enhancing the existing application experiences of YouTube, Google Photos, and Google Maps.
Like many first-generation technologies, Galaxy XR attempts to achieve multiple functions, with potential for both consumer and enterprise applications.
Qualcomm provides its Snapdragon XR2+ Gen 2 chip to drive the operation of the headset.
Market Challenges Are Severe
Despite many tech CEOs believing that &#34;face computing&#34; is the next trend in personal computing, the market size remains quite limited by tech industry standards.
Research firm Gartner estimates that the global headset market is expected to grow by 2.6% starting this year, reaching $7.27 billion next year. This growth is expected to be largely driven by lighter, glasses-style AI devices, such as the Ray-Ban smart glasses launched in collaboration between Meta and EssilorLuxottica (ESLOY.US).
Although the competitive landscape is expanding, the global virtual reality market (including the recently released so-called &#34;mixed reality&#34; headsets) has faced three consecutive years of decline. Research firm Counterpoint's data shows signs of market fatigue, with a projected 20% year-on-year decline in shipments by 2025.
Counterpoint senior analyst Flora Tang stated, &#34;With a potentially more competitive price point than Apple's Vision Pro, Samsung's Moohan project headset could become a strong competitor in the high-end VR space, especially in the enterprise market.&#34;
Galaxy XR is the first Android XR device. However, Samsung's involvement in face computing devices dates back a decade when it collaborated with VR headset manufacturer Oculus to launch the Gear VR headset, which required a smartphone to operate. In 2014, Meta acquired Oculus

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Samsung Electronics officially launched the Galaxy XR augmented reality headset, priced at $1,799, which is about half the price of Apple's Vision Pro. The product is equipped with Google's AI capabilities and aims to compete with Meta and Apple. Samsung's collaboration with Google and Qualcomm will lead to the release of more devices based on the Android XR operating system. In the future, Samsung also plans to introduce lighter smart glasses. Currently, Meta holds about 80% market share in the VR market, followed closely by Apple

- Samsung Electronics has officially launched its Galaxy XR extended reality headset, priced at $1,799, aiming to compete in the emerging "face computing" market dominated by Meta and Apple.  
- The device integrates Google's AI capabilities and is part of a series of Android XR products developed in collaboration with Google and Qualcomm, with plans for lighter smart glasses in the future.  
- Despite the current market challenges, Samsung's Galaxy XR is positioned as a strong competitor in the high-end VR sector, particularly for enterprise applications, leveraging its competitive pricing and advanced features.

Samsung teams up with Google and Qualcomm to challenge Apple with "half-price" XR headsets