South Korean tech giant Samsung Electronics has officially launched its new extended-reality (XR) headset, the Galaxy XR, priced at US$1,799 and aimed squarely at challenging Apple Inc.’s dominance in premium mixed- and virtual-reality devices.
What stands out is Samsung’s decision to team up with Google LLC and Qualcomm Incorporated for this move. The Galaxy XR is the first device powered by “Android XR” and integrates artificial intelligence features using Google’s Gemini platform, while Qualcomm supplies the Snapdragon XR2+ Gen 2 chip at its core.
Samsung has been quietly working on XR for about a decade, dating back to earlier experiments such as the Gear VR. It only moved to a more serious XR strategy about four years ago, when it entered a partnership with Google (codenamed “Moohan”, meaning “infinite” in Korean).
The Galaxy XR blends virtual-reality immersion with mixed-reality capabilities, meaning users can view videos, play games, and review photos, but they can also interact with their environment. One key feature is integration with Google’s AI: using Gemini, the device can analyse what the user is seeing and offer contextual information, directions, or object recognition.
By comparison, while Apple’s headsets, including its Vision Pro, have advanced hardware, they have yet to fully demonstrate the kind of multimodal AI capabilities Google offers, according to analysts.
Despite the buzz around XR, the market remains modest and faces considerable headwinds. Analyst firm Gartner estimates the global head-mounted display market will grow only 2.6% to about US$7.27 billion next year. Meanwhile, device-shipment data from Counterpoint Research indicate the virtual-reality segment has experienced three consecutive years of decline and is forecast to fall 20% year-on-year in 2025.
In terms of competitive dynamics, Meta Platforms, Inc. (owner of the Oculus brand) dominates with about an 80% share of the VR headset market; Apple remains a niche player. This context presents both an opportunity and a risk for Samsung. On the one hand, its pricing is significantly lower than Apple’s (the Galaxy XR is about half the cost of Apple’s headset), which may appeal to more cost-sensitive buyers. On the other hand, achieving meaningful market traction remains uphill in a category where consumers have yet to wholeheartedly embrace XR devices.
For Samsung, success with the Galaxy XR could reposition it as a serious player in “computing-on-your-face” devices. The strategic partnership with Google enables it to lean heavily on AI and software services, potentially building a new ecosystem beyond smartphones. Samsung can also use its scale in displays, hardware manufacturing, and supplychain expertise to its advantage.
From a business-model standpoint, bundling premium services (such as 12 months of Google AI Pro, YouTube Premium, Google Play Pass and XR-specific content) may help drive recurring revenue and ecosystem lock-in.
However, key risks remain: consumer uptake may remain muted, the device is still expensive, and heavier form factors may deter mass-market adoption. Samsung’s statement that lighter “glasses-style” future devices are planned is a signal that it sees the current headset as a stepping stone rather than the final product.
Another critical factor will be software and content; compelling applications are usually needed for devices to succeed. Samsung’s partnership with Google provides a robust software foundation, but it remains uncertain whether content partners, developers, and end-users will follow suit.
The Galaxy XR launch is a bold move by Samsung — leveraging leadership in hardware and forging partnerships with software and chipset leaders to stake a claim in a nascent and uncertain market. If it succeeds, Samsung could emerge as a credible alternative to Apple and Meta in XR. If not, it risks being another early entrant in a category that still needs a “killer app” and broader consumer appeal. Either way, it will be one of the more compelling technology-industry narratives to watch over the coming year.
