Magic Leap Sells Only 6,000 Headsets Despite Billions in Funding
A new report reveals that Magic Leap sells just 6,000 units of its pricey augmented reality headset in its first six months. This disappointing figure falls drastically short of internal expectations and raises serious doubts about the company's future.
Magic Leap struggles to find buyers for its $2,300 Magic Leap One headset, selling only 6,000 units in its first six months on the market. This dismal performance falls far short of CEO Rony Abovitz's revised goal of 100,000 units in the first year, which is already a massive drop from his initial one-million-unit target. The company currently seeks a Series E funding round to stay afloat amid these disappointing early sales figures.
The startup spends more money than any other AR company to release its first device, bringing its total venture funding to approximately $2.6 billion. Major backers include tech giants like Google and Alibaba, though the report indicates that Google CEO Sundar Pichai steps down from Magic Leap's board. An unnamed Google executive replaces Pichai as the company tries to navigate its financial challenges.
Such low sales cast serious doubt on Magic Leap's ultimate goal of building augmented reality glasses that compete with Apple and Microsoft. While public sales data for AR headsets remains rare across the industry, the massive gap between Magic Leap's funding and its actual consumer adoption highlights a major disconnect. The company faces an uphill battle to prove its long-term viability in the competitive mixed-reality space.