The metaverse is a fancy term for AR and VR technologies. Apple is an AR/VR laggard, but that is likely to change in Q1 2023 as Apple rolls out its AR/VR headset. Microsoft has played in the AR/VR space for a few years.
Both AAPL and MSFT have stronger balance sheets to leverage across AR/VR both in terms of organic development and M&A.
- On the M&A side, were I an AR/VR entrepreneur or VC, I’d prefer to sell my company to AAPL or MSFT over META.
- Both Apple and Microsoft have superior stories to tell entrepreneurs as compared to META. If I were AAPL or MSFT competing against META for a deal, I would push hard on the “Zuckerberg is a meddlesome CEO” angle. Instagram co-founder Kevin Systrom is the example I would use.