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Apple (AAPL) Rumored to Launch AR-Supported Headset in 2H22

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Apple's (AAPL - Free Report) Augmented Reality (AR) and Virtual Reality (VR)-related ambitions are well known, and its endeavors in developing AR/VR-supported devices have been much speculated. In fact, CEO Tim Cook is known to be a fan of AR technology.

The iPhone-maker is now rumored to launch its first AR headset in the second half of 2022. Per 9TO5 Mac, which cited a Digitimes report, the rumored AR headset has completed the second phase of prototype testing and is expected to be in production in the second quarter of 2022. This high-end commercial-purpose device is expected to cost more than $2000.

Design for the consumer-oriented device is yet to be finalized, and it is anticipated to be launched after 2023.

Meanwhile, renowned analyst Ming-Chi Kuo expects Apple to release a new “helmet-type” headset with Micro-OLED displays and AR/VR capabilities in 2022. This headset is expected to comprise of 15 camera modules, of which eight will be dedicated for AR video experiences.

Per Kuo, Apple is also working on new AR glasses, which are expected to be launched not before 2025.
 

Apple Inc. Price, Consensus and EPS Surprise

Apple Inc. Price, Consensus and EPS Surprise

Apple Inc. price-consensus-eps-surprise-chart | Apple Inc. Quote

 

AR glasses from Apple, once available, will intensify competition for the likes of Facebook and Alphabet (GOOGL - Free Report) division Google. Facebook recently announced its Ray-Ban Stories smart glasses, developed in collaboration with EssilorLuxottica.

AR/VR Presents Solid Growth Opportunities

AR features are already available on Apple’s iPhone and iPad. Apple launched ARKit for iOS 11 that uses iPhones’ and iPads’ cameras and sensors to overlay images in 3D space.

In the latest iOS 15, this Zacks Rank #1 (Strong Buy) company is using AR technology to enhance the effectiveness of its Maps. With the help of AR, iPhone users can now receive detailed walking directions in Apple Maps. You can see the complete list of today’s Zacks #1 Rank stocks here.

AR/VR presents significant growth opportunities for technology companies, including Apple, Facebook, Google and Microsoft (MSFT - Free Report) . Markedly, an IDC report indicates that worldwide spending on AR/VR products and services is anticipated to see a CAGR of 54% between 2020 and 2024.

While Microsoft’s HoloLens 2, which is a mixed-reality device, has gained enterprise adoption, Facebook recently launched the open beta version of Horizon Workrooms, available for free download on Oculus Quest 2 in countries where Quest 2 is supported. Horizon Workrooms lets users come together to work in the same virtual room.

Facebook is also reportedly working on an all-day AR wearable, expected to release between 2023 and 2025.

Apple’s AR headset, which will be a totally new device under the reign of Tim Cook, is expected to open up new a channel of revenues. The rumored AR headset needs to be connected with iPhone, which remains Apple’s flagship device.

In third-quarter fiscal 2021, iPhone sales increased 49.8% from the year-ago quarter to $39.57 billion and accounted for 48.6% of total sales.

Apple also unveiled four new iPhone models – iPhone 13, iPhone 13 mini, iPhone 13 Pro and iPhone 13 Pro Max – at its virtual product launch event on Sep 14. Undoubtedly, Apple will benefit from the timely launch of iPhone 13 ahead of the holiday season. iOS 15’s attractive updates are expected to further drive iPhone shipment, thereby driving top-line growth.


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