Mark Zuckerberg’s company is returning to China, but not with social media.
According to The Wall Street Journal, Meta has struck a deal with Chinese conglomerate Tencent, which will be the exclusive seller of a new and cheaper version of the virtual reality headset in late 2024.
Meta plans to use cheaper lenses than those previously seen in the Quest 3, and it will account for the lion’s share of sales.
The deal comes after nearly a year of talks between the tech giants and 14 years after China blocked Facebook following 2009 protests that erupted in Urumqi, Xinjiang province, following the death of a Uyghur factory worker and government inaction.
Beijing has banned major US technology companies from doing business in the country and launched the “Golden Shield” internet content filtering system. The one exception is Apple, which has long depended on China for the production of its iPhones, iPads, AirPods and Macs, and particularly relies on Taiwanese electronics company Foxconn. In fact, in the second quarter of this year, more iPhones were sold in China than in the US.
Meta, meanwhile, gets money from China through Facebook and Instagram ads it sells to Chinese companies. In the earnings call, CFO Suzanne Lee told investors that the gaming and commercial segments “benefited from strong spending among advertisers in China” and that their spending “accelerated” in the third quarter.
