Pico is said to be unhappy with the Pico 4 sales figures. The rapid growth since the acquisition of Bytedance is said to cause problems for the company.
According to a Chinese report, there are problems in Pico. Individual departments are said to have fallen out with each other. Additionally, the headphone maker isn’t happy with the Pico 4’s international sales figures.
The Pico 4 is said to be missing its sales targets
Chinese website Sina Technology says it has spoken to several insiders at Pico and in the XR industry and reports dissatisfaction within the company. One of the reasons is the low sales figures of the Pico 4. Pico will clearly miss the statement goal of one million VR headsets sold this year.
According to data from market research firm Sandalwood Advisors, Pico sold 46,000 VR headsets in the first 18 days since its September 27 launch. Even before that, Pico had revised its unit production figures down significantly. Originally, 2.5 million units were planned. In the end, Pico reduced supplier orders to 1.8 million.
Pico itself reported supply bottlenecks for the Pico 4 days before launch due to “unprecedented global demand”, which delayed delivery of pre-orders mainly in Europe. If the sales and production figures given in the report are correct, it is unlikely that the delivery problems are related to the orders received.
Did Pico misjudge the VR market?
According to industry insiders, the VR headset maker’s funding and resource capacity have improved since ByteDance acquired Pico. However, the product strategy is unconvincing, they said. Pico 4 will be downgraded to an older product next year as new chips come to market and Pico will have to introduce a successor.
“Consumer buying appetite will naturally decline, and I wonder what the executives who incorrectly predicted the market situation will do with so much inventory by then,” an XR industry source said. cited by Sina Technology.
According to a former HTC Vive senior technical expert with over 20 years of industry experience, the Pico 4 is also heavily subsidized. With every Pico 4 sold, Pico would lose $140, according to the report.
Another Pico source concedes that Pico’s approach is too aggressive because the market is not yet mature.
“Pico thinks he can create a market by spending a lot of money. But if you look at the current development of the VR industry, the adoption rate of VR products among home users is still low. Most consumers don’t even know what experience virtual reality can bring. »
Internal dissent after ByteDance acquisition
Due to the company’s rapid expansion, there are also weaknesses in product quality, the sources said. In the early stages of product development, some technical staff accepted the use of individual components even if they encountered minor problems during testing, as long as these problems did not affect the immediate launch of the product.
The acquisition of ByteDance has also led to internal wrangling, according to Sina Technology. Pico grew from 100 to over 2,000 employees in one year. As a result, various factions have formed between old and new employees who compete for resources. A source describes the workforce as a rival football team. Everyone plays in their own way, there is no common effort for a common cause.
A former employee also says Pico employees rarely use the company’s own products. They are aware of the difference in quality between the Pico VR headset and foreign products like the Meta Quest 2, especially in terms of software offers. The performance difference between Pico and its competitors is between three and five years, they said.