A Chinese AR startup challenges Apple by offering an affordable spatial computing device

The line between smartphones and augmented reality or AR devices is blurring.

As the iPhone maker prepares to launch Apple Vision Pro in China, Chinese company XREAL on Thursday unveiled a phone-like device that supports spatial computing and most of the mobile apps displayed on smart glasses.

“Does not include phone calling functionality. Besides, it can do more than a phone,” Xu Chi, founder and CEO of XREAL, said at a conference in Beijing.

XREAL Beam Pro features a touchscreen, app store and dual-camera design, allowing users to capture 3D photos and videos and view 3D content through XREAL glasses.

Spatial computing, also used in Apple Vision Pro, is the next generation of human-computer interaction techniques that provide users with a more immersive experience.

The XREAL Beam Pro, which goes on sale Friday, starts at 1,299 yuan ($182.82). The 5G-enabled version will be available in August.

The Beam Pro and XREAL glasses bundle costs around 4,000 to 5,000 yuan, which is still an affordable choice for consumers compared to Apple Vision Pro.

According to media reports and industry sources, the Apple Vision Pro, which costs $3,499, will begin official sales in China later this year, likely after the Worldwide Developers Conference in June.

zhu shenshen / SHINING

“iPhone Moment” AR

In 2024, sales in the global AR/VR devices market are expected to increase by 46.4%. According to an International Data Corp. researcher. in 2023, XREAL had 43% of the global AR market share, surpassing Microsoft’s share.

Despite rapid growth and Apple’s entry that has galvanized the market and excited consumers, AR is still waiting for its “iPhone Moment,” Xu said.

The debut of Beam Pro will enrich the AR ecosystem and offer users a portable and complete choice of spiral computing, the company says.

With the device, consumers can create their own AR content; access native AR content in iQiyi, Kuishou and Bilibili apps; and enjoy the latest Android apps through XREAL’s new Nebula OS.

In the future, artificial intelligence will be the next growth driver for AR development.

AR is the best tool for AI, and AI is the best way to interact with AR, Xu said.