 Most people complain that Apple Vision Pro is too expensive. What is the truth? But not really. In reality, Apple is not making money off its devices. It actually has a hidden agenda to make money out of consumers. And it has a hidden agenda that 99% of the YouTubers do not talk about. Maybe because they don't have the in-depth combination of product and engineering knowledge and also maybe simply because they're afraid of piecing off Apple. In this video, I'm going to investigate Apple's true motivation but how it's really making money off consumers. But not through devices but through its five hidden opportunities. And I'm also going to investigate what's on his strategic roadmap and what's most needed to not talk about. Stay until the end of this video where I reveal the last hidden resources that Apple might use to change its business model forever. Hey guys, this is Dr. Nancy Lee, a director of product and featured in FORCE. I help 100 people land their dream PM job offer in fan companies and unicorn startups and continue to get promoted as a product leader. In this channel, I cover the latest tech trends and product management knowledge. Like and subscribe to the channel to be notified every time I turn on a new video every Tuesday. When we talk about Apple Vision Pro is really expensive or not, let's look into Apple Vision Pro's value proposition. In the past, if you compare Apple Vision Pro with any other like VR goggle on the market such as Meta Quest is only $500 but Apple Vision Pro is $3,500 so seven times more expensive. But if you don't see it as VR or AR headset, it's going to change the perspective of the value proposition. For example, in my last video, a top of top five use cases of Apple Vision Pro, some of the industries such as robotics integration and the Apple Vision Pro is being perceived as content delivery platform instead of just a headset. Now, from Apple's perspective, let me show you what's inside a Tim Cook's mind. In Tim Cook's brilliant mind, his seeing Apple Vision Pro not as a VR AR headset, it's actually the computer that giving access between human and the internet. So what it looks like is it's actually an iPhone that stick to your face but with a very beautiful design and is able to integrate with all your work apps and integrate with different kind of content outside and maybe become the new browser to the internet. One of my followers, Tom says something very insightful. He said, I don't understand the obsession with the price. A base mini M2 Pro with a base studio display will run just a little under the $3,500. The Apple Vision Pro is not just a headset. It is a full-blown M2 computing device with a state-of-the-art VR AR display. I totally agree with his statement and I believe Tim Cook is seeing his device as it's a new computer as well. In reality, Apple is not making money off the Apple Vision Pro right now because it's the first generation and lots of R&D to make it. And even the manufacturing cost of such device is over $1,500. But it's a bridge over my new opportunities for Apple to make money through different aspects. How do I know it? Let's look up in the history of the Apple revenue product breakdown. Since 2022, Apple's number one selling product is actually iPhone which has a total revenue breakdown of 57.8% followed by services is 15.8% and then followed by different kind of accessories that's already almost 12% and then followed by Mac and iPad. So this trend of Apple actually invent some new devices such as a Mac, a computing company and gradually upgrade itself integrating computing into different kind of devices such as iPhone, iPad, iWatch and start to generate revenues through different aspects. Apple is no longer a computing company, it is a device, it is a phone company. So therefore it's likely in a long-term 10-year strategy roadmap they're trying to play something very similar for Apple Vision Pro as well. So how is Apple really making money off the consumers? Let me introduce you to the second revenue generation model for Apple which is selling data set. Think about it, right now if you're able to wear Apple Vision Pro seeing everything around you inside a house, everything you do and filming your kids playing with others is turned into a huge amount of data set that in the past no company is able to capture in the past. Now if you wear Apple Vision Pro inside a house you can use machine vision technology to detect any kind of object around you and understand your day-to-day behaviors. Oh it is really really scary and creepy and then Apple can sell the data set to the government, to third parties or they can use the data set to create a new product and put back on us again and they can also sell the memory of people. For example if a grandpa and your grandson said hey what does it look like when you grew up? Grandpa can bring down the Apple Vision Pro recorded from 50 years ago of his childhood and put it back on the little grandson. So the memory also has a lot of value to people as well because a lot of emotional attachment to it. This just reminds me of one of the very scary TV shows such as Black Mirror and I think some of the episode is going to become a reality from there as well. Do you agree with me? Like, comment and subscribe. The survey Apple is able to generate tremendous amount of revenue through us is actually by selling ads and it's actually by eliminating its competition which is Google and Meta. Think about this, if Apple is able to collect way more data about us compared with Instagram, Facebook, by the way nobody use Facebook anymore or through Google search because you don't need to search anymore you use Apple Vision Pro and directly communicate with Siri to pull information out of your Mac and in that way Apple Vision Pro can actually cut off Google directly pull information from Safari instead. In the past Apple has done something very similar. iPhone had many privacy updates that eliminated several ads playing methodology that made many ad companies win all the business because it actually give less data to Google and Meta and think about if they do this again to Apple Vision Pro's data and Google Meta is going to get killed quickly. And then Apple become even more valuable because currently the market capital Apple is even bigger than a combination of Google, Meta and Amazon. You never know what's gonna happen in the future. Number four, create developer platform. Did you pay close attention to the announcement video of Apple? They had a call to action to developers to create Apple Vision Pro specific application running on top of the platform. If they became the true platform they will become very powerful. Give you some specific example. When Apple started its own computer they started inventing iOS systems they had their own computing platform to compute with Microsoft. Why Microsoft this company still exists today was because when Bill Gates started Microsoft years ago it became a platform. Instead of building a computer Bill Gates said yes let's create a Windows platform because the operating system is a foundation of all the computer software to run in so that makes Microsoft still be relevant today even in most Microsoft products it's not that impressive compared with Apple's product today. Building any kind of platform is always very difficult to create but once it's created it cannot be easily destroyed. Number five is about selling content. Apple Vision Pro might potentially become the new Netflix. Can you imagine this? And especially if they become a new trend for everyone just to access content videos or many new ways or is their virtual girlfriend boyfriend living inside Apple Vision Pro is able to become the new Netflix. And in my last video regarding top five use cases I talked about the use case number five which is the adult industry. Lots of my loyal followers actually agree that adult industry might be the first one is going to take off through the integration of AI and Apple Vision Pro. So in that case Apple can just start to sell adult content or any other content through Apple Vision Pro and cut off any third parties. And Apple actually have done something similar in the past. When they launched iPod they started to introduce Apple Music and they disrupted the entire music industry. Not only buy a device they can only buy one dollar song from Apple and then Apple started to make money off those musicians. So Apple soon might start to make money off those content creators and become its own content creator which is the future of Netflix. Scary. As the end of the day it might be free because Apple can make so much more revenue through the five different ways I just described earlier and increase the access to Apple Vision Pro so they can build a new empire. Everything I just described can actually change the business model and also can change everything we're going to perceive in the future but this is what happened in the upcoming two years five years even ten year roadmap. Do you agree with what I said? Comment, like and subscribe. I love to hear from you guys. Check out more tech trends of AI and Apple Vision Pro in my playlist right here. This is Dark Training City from PMX. I'll see you in my next video right here.