72 The Market For Virtual Reality Is Nascent Despite significant headset improvements, including Apple's Vision Pro, developers have not flocked to support virtual reality (VR). Without compelling use cases, adoption has been slow. Meta Quest, for example, is offering only 2,200 apps—a fraction of the 553,000 the iPhone boasted five years after its launch. As a result, Meta has sold only 27 million Quest units, 18% of the 146 million iPhonesApple sold cumulatively five years after launch. Apple iPhone vs. Meta Quest iOS vs. Meta Quest Apps S Headset Shipments R E iOS Apps Meta Quest Apps M Apple iPhone Meta Quest U S N 160 1,000 CO ) 140 e L l A s a T c I 120 S 100 G nit) g DI U ns100 o e s (L iv io ) at l 80 nits 10 l il U u (M 60 and m s u u C 40 ho 1 20 (T 0 0 1 2 3 4 5 1 2 3 4 5 Years After Launch Years After Launch Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.