Next week, Apple Inc. (AAPL.O) is anticipated to unveil a headset that combines real-world and virtual video. Tim Cook, CEO of Apple, and Mark Zuckerberg, CEO of Meta Platforms Inc. (META.O), are competing to define how consumers will utilize a new generation of technology that merges the physical and digital worlds.
For years, Zuckerberg has promoted the “metaverse,” a parallel digital environment where people can work and play.
Apple marketing chief Greg Joswiak reportedly termed the metaverse “a word I’ll never use.” So far, Apple’s product is a rumor. On Monday in California, Apple’s Worldwide Developers Conference sessions begin at 10 a.m. PDT (1700 GMT).
Until now, the firm best known for iPhones has limited its augmented-reality efforts to technology that works on existing devices, such as enabling shops’ applications to show simulated furniture in a customer’s living room.
Apple and Meta are rivals. However, Anshel Sag, principal analyst at Moor Insights & Strategy, stated, “Meta is doing it publicly, while Apple is doing it privately.”
The Apple item, which Bloomberg said may cost nearly $3,000 and look like ski goggles, is a placeholder, analysts believe. The Cupertino, California, company’s ultimate ambition is to create transparent glasses that overlay digital information on the real environment and can be worn all day. Still, in the face of competition, it launched its goggles. Apple declined to discuss its future goods and intentions.
In the meantime, Apple’s rivals like Sony Group Corp (6758.T) and Pico, owned by TikTok parent ByteDance, have created mixed-reality headsets that show what is possible by mixing the real and virtual worlds. For example, Meta Platforms released the $500 Quest 3 headset this week after last year’s $1,000 Quest Pro.
Since 2017, Apple has promoted augmented-reality technologies for iPhones and iPads, although most widespread implementations have been furniture-shopping apps and a few games.
Analysts say Apple has kept its work covert because Silicon Valley doesn’t know how people will utilize mixed- or augmented-reality (XR) technology. As a result, the device has no “killer app” yet. Instead of targeting a mass-market pricing point, Apple looks to be preparing a premium gadget to inspire software developers to create interesting apps.
“No one there believes this market is anywhere near ripe in the foreseeable future,” said Ben Bajarin, Creative Strategies’ CEO and primary analyst.
Apple’s biggest danger is risking its reputation for polished products in a pricey struggle with Meta for control over a market that doesn’t yet exist. IDC statistics show that Meta held 80% of the 8.8 million headset market last year. In addition, apple sold 226 million iPhones, according to IDC.
Jitesh Ubrani, IDC’s XR market research manager, noted that while Meta has goods on the market, Apple has huge advantages in defining the new sector among software developers. Apple has great ties with developers that want to access 2 billion Macs, Apple Watches, iPhones, and more.
“They can leverage that ecosystem they’ve already built to keep users within their walled garden,” said Ubrani. Apple can offer a cross-device experience better than Meta.
