(Yicai) Nov. 1 -- The augmented reality industry is a no man’s land, as the recently released Apple Vision Pro missed expectations, according to the chief executive officer of AR glasses maker Xreal Technology.

The Vision Pro, released in June this year, has great performance but is bulky, with a price beyond consumers’ reach, Xu Chi said at a press conference yesterday, adding that the AR industry has entered a moment of uncertainties.

While the iPhone was a leader in the smartphone industry, bringing confidence among market participants and consumers, the Vision Pro made everyone cautious, or cautiously optimistic, about the AR industry trends, Xu noted.

Google and Microsoft gave everyone high expectations, but their AR products failed to succeed. The AR market is just like the smartphone market in 2005, when many trends were emerging before the debut of the first iPhone.

If Apple, Huawei Technologies, and Samsung Electronics all enter the market in 2025, it may be challenging for startups like Xreal, as the competition would be more intense, with faster product iteration, Xu pointed out.

China’s advantage is that in the past 15 years, it has accumulated quite a few talents and supply chain infrastructures, so it can quickly reduce costs and optimize product iteration, Xu said. But its biggest shortcoming is that it should start from scratch in the AR sector, he added, noting that once China makes up for its disadvantage, it can lead or surpass other players in the industry.

In the existing competitive landscape, it is difficult for a company to survive if it cannot make money from global markets, Xu explained. But the most difficult challenge remains to make money in China, not only in the AR industry but also in all kinds of intelligent hardware sectors.

Healthy companies generally make money quickly from overseas markets, then invest in research, development, and marketing, and finally go back to compete in China, Xu pointed out, adding that 70 percent of Xreal’s business revenue comes from overseas.

Founded in 2017, Xreal is an AR glasses firm. It received investments worth over USD240 million from companies including Alibaba Group Holding, Kuaishou Technology, and Nio Capital.

Editor: Futura Costaglione