(Bloomberg Opinion) — Apple Inc. still plans to introduce its first mixed-reality headset this year but — due to technical challenges — an even bigger product, lightweight augmented reality (AR) headsets, has been postponed.
The company originally hoped to launch the augmented reality headset after the debut of its mixed reality headset, which combines AR and virtual reality (VR), but that part of the plan is now on hold. Instead, Apple will stick with a lower-cost version of the mixed-reality headset starting in 2024 or early 2025, according to people familiar with the deliberations.
The change in plans highlights the challenges Apple faces as it enters a new industry. The company is betting that AR and VR devices could be a big cash cow, but the technical challenges of producing a consumer-friendly product have plagued much of the tech world. Apple’s initial dream of offering a lightweight augmented reality headset that people could wear all day now seems many years away, if ever.
Virtual reality headsets — a market currently dominated by Facebook owner Meta Platforms Inc — offer a more immersive experience, and they typically use them to play video games, communicate in virtual meeting rooms and watch videos. AR glasses, by contrast, overlay images and information on views of the real world. The hope is that users will be able to wear them during a normal day, but previous attempts at the concept, such as Google Glass, haven’t caught on.
The high cost could also make an Apple headset more of a niche product. The initial mixed reality device that should be out this year will cost around $3,000. The high price tag stems from the use of advanced, high-resolution displays, more than 10 cameras, sensors to determine where a user is looking, and a Mac-grade M2 processor and dedicated chip to handle AR and VR imaging.
Apple aims to lower the price of the mixed reality device by using chips on par with those in the iPhone instead of components found in high-end Mac computers. The company will compete with Meta’s $1,500 mixed-reality headset.
Trademark registrations made by Apple hint at the dual device strategy. The documents include the names “Reality Pro” and “Reality One.” The Pro name is likely for the entry-level model, while the “One” suffix could be under consideration for the cheaper version. There is also a trademark application for “Reality Processor”, which would allude to the name of the dedicated chip.
The company is focusing on the low-cost devices instead of the augmented reality glasses, which were scheduled to launch about a year after the initial headsets, said the people, who asked not to be named.
An Apple spokeswoman declined to comment on the company’s plans.
Apple’s mixed reality headsets will use screens to create an all-encompassing virtual reality environment and passing cameras to mimic an augmented reality effect. That’s a lot less complicated than the technology needed to make an augmented reality-only device that looks just like regular glasses.
Original Note: Apple Delays AR Glasses, Plans Cheaper Mixed-Reality Headset (2)
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