Apple could be gearing up for a 'game-changing' event
By Emily Bary
Apple is expected to debut a mixed-reality headset at WWDC next month, and while initial sales should be limited, BofA says the launch could set the stage for an exciting future
Another analyst sees a compelling future for Apple Inc. as the company prepares to debut its mixed-reality headset early next month.
Yes, Apple's (AAPL) rumored Mixed reality headset is expected to set you back $3,000, and projections for initial sales aren't particularly high. But the prospect of a splashy new device launch has BofA Securities analyst Wamsi Mohan asking whether the upcoming WWDC developer conference will be a "game-changing one."
"Although the lackluster uptake of the AR/VR (augmented reality/virtual reality) market and the transitory enthusiasm about the metaverse create a backdrop of challenges, it is instructive to remember that Apple invents entire new categories that have the potential to disrupt existing markets (e.g., AirPods) and create entirely new markets," he wrote in a Wednesday note to clients.
Apple readies launch of $3,000 headset: Will it succeed where others have failed?
Apple is expected to put a hefty price tag on the debut Reality Pro headset, but "it's important to recognize that the headset version three years from now will be cheaper, faster and have many more use cases," Mohan explained.
The headset ultimately could deliver benefits to Apple's business beyond its own sales. If Apple is able to drive "meaningful adoption" of mixed-reality headsets, the device could end up contributing a third of App Store revenue by 2026, he reasoned.
Don't miss: Apple CEO Tim Cook explains why consumers would want a mixed-reality headset
Other announcements at WWDC, which kicks off June 5, could concern Apple's work in artificial intelligence. The company already makes use of AI in a number of ways, including with its camera and translation tools, but the company could tease new enhancements for its forthcoming iOS 17 software update.
"At a time when the world is captivated by Generative Artificial Intelligence (AI), we see Apple using AI at the backend in chips (Neural engine), computational photography, iPad palm rejection, recommendation engines, recently announced accessibility features etc. all with privacy at its core and do not expect a step function change in user interface and interactions," Mohan wrote.
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May 24, 2023 12:38 ET (16:38 GMT)
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