3 ms·
Losing close to $4B per year, it’s safe to say they are already giving away the hardware.
by ttul 3y ago
Losing close to $4B per year, it’s safe to say they are already giving away the hardware.
- Firmwarrior 3y agoPretty wild that someone has the audacity to claim that $500 is expensive in this case. It's basically a high end tablet with a lot of low-volume custom parts. I wouldn't be surprised if they'd need to charge $1000 with no loss in sales to break even on just the headset's hardware+firmware (never mind the "metaverse" stuff they're dumping money into)
- Zemtomo 3y agoEven if it is not a success in any business context of meta, they still sold millions of it. Economy of scale is definitely a thing here.
- Firmwarrior 3y agohmm, I didn't realize they'd sold around 20 million of these things You aren't going to get iPhone/Samsung Galaxy-level scale effects out of that kind of volume, but it's enough that they might be able to break even within 50% over public BOM estimates
- Zemtomo 3y agoYes it surprises me too. And it even makes it weirder to me that I never felt seeing or hearing much about those headsets. Are they all sleeping in some boxes put away?
- laweijfmvo 3y agoReality Labs is losing a lot more than $4B
- loeg 3y agoI believe it's losing $4B per quarter, not per year. And it's getting worse: > We continue to expect Reality Labs operating losses to increase year-over-year in 2023. https://investor.fb.com/investor-news/press-release-details/2023/Meta-Reports-First-Quarter-2023-Results/default.aspx https://investor.fb.com/investor-news/press-release-details/...
- irrational 3y agoNot at $500 a pop. The question is, do they want to sell hardware or do they want to sell the metaverse?