Apple's new mixed-reality headset will test its reputation

The Starters

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It is believed that Apple Inc.'s mixed reality headset could eventually replace the iPhone as the company's flagship product.

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Apple envisions a headset that can be worn all day long and anywhere. Users could tap away on the device instead of carrying around a laptop or phone. According to some within Apple, the company's first headset will offer consumers a taste of that tantalizing vision despite its high price tag of about $3,000.

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Considering that's all it takes, what is the likelihood of the headset being successful? It is harder to predict the answer to that question. Apple might have something it hasn't had in years: a bomb with this first headset. There is a possibility that augmented and virtual reality will someday lead to a successor to the iPhone. 

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Apple is expected to release a mixed-reality device this year, likely dubbed Reality Pro, that features dual 4K displays and flexible OLED screens that reveal the user's eyes. Besides its dozen cameras, the device will analyze the wearer's body movement and eye movements as well as the environment around them. 

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Undoubtedly, it will be a marvel and one of the most advanced devices on the market. In addition, most consumers will find it impractical and too expensive. Due to its short battery life, inability to work outdoors, limited content, and uncomfortable design, it will only last about two hours per charge.

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Undoubtedly, it will be a marvel and one of the most advanced devices on the marketracted mainstream interest when it entered the music player, phone, tablet and watch categories. In order to beat the competition, Apple simply created something better.

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In contrast, the AR/VR headset industry is still in its infancy. Consumers will need coaxing to purchase such a product.

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Although it offers immersive video watching, tight integration with Apple products, and advanced VR-based FaceTime conversations, the device has yet to find a "killer app".

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This problem was not present in the original iPhone. This was an example of Apple reshaping an existing device. The iPad demonstrated that the world was ready for tablets and that tablets could replace laptops or serve as casual entertainment devices.

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Apple sold over a million iPads in its first 28 days, and 1 million iPhones within months of its launch. But it didn't stop there. Over 10 million iPhones were sold in the second year, while 15 million iPads were sold in the first eight months of its existence.

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In its first year, more than 10 million people wore the Apple Watch for fitness tracking and health notifications. Sluggish processors and mediocre apps did not stop them.

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The headset story will unfold differently according to Apple's own plans. First-year production is expected to be only 1 million units. At least initially, Apple will have a low-volume product in this category.

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Moreover, the headset isn't clearly superior to Apple's existing products. Jobs argued that the iPad was better than a Mac or iPhone at browsing the web, watching videos, and viewing photos. As opposed to the iPhone, the Apple Watch performed better with activity trackers.

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Consumers won't be willing to spend $3,000 on an Apple headset that isn't better for video watching or FaceTime than an iPhone or iPad. The iPhone 4 costs five times what the original iPhone cost in 2007.

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It may also serve as a developer prototype for the day when cheaper and more practical devices become available, despite my belief that Apple will market Reality Pro exclusively as a consumer product.

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Microsoft Corp.'s HoloLens and Meta Platforms Inc.'s Quest Pro have been slow to take off because they are expensive. As a result, HoloLens is generally regarded as a failure. Recent cuts indicate that it isn't a priority for the software giant. Quest Pro has stagnated at $1,500.

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Quest headsets, which are the most popular VR model, aren't used more than half of the time after purchase.

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Apple's headset will be far more glitzy and sophisticated than existing headsets, but it still faces the same challenges: high price, limited usage, and consumer apprehension.

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Reality Pro will most likely need to be positioned as a preview of what's to come if Apple wants to avoid becoming a high-profile flop. The marketing department at Apple has never had to downplay the launch of a new product.

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In any case, rapid improvements will be necessary after launch - with outside developers' help. If they are able to create a better experience than those on iPhones and iPads, that would be a big step forward. A $1,000 price reduction and an increased battery life will put Apple on the right track.

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Apple's release of true AR glasses - at the same price, with the same features, and with the same battery life as an iPhone - would have the same impact on the technology landscape as previous innovations.

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Apple's reputation as a guaranteed hitmaker is at risk due to the current situation.

The Bench

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The new mixed-reality headset from Apple. This past week, I wrote an in-depth review of the headset's hardware, software, videoconferencing capabilities, content partnerships, battery system, Mac integration, onboard features, and user interface. If you're interested in the upcoming device, let me know what you think about the story.

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With the expansion of Apple in Asia, it will open stores in India and Malaysia. Retail store expansion has been slower during the Covid era, but is now picking up again. The company is looking to expand in India and Malaysia for its next major expansion. I think India will see iPhone growth first, but Malaysia appears to be a promising market. The company has begun recruiting retail staff in both countries.

The Schedule

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On Feb. 2, Apple will discuss its latest iPhones, iPads, and watches as part of its quarterly earnings call. On Feb. 2, investors will learn how Apple is handling shaky demand. While Apple's iPhones have sold better than rival models, consumer fears will weigh on the company. During Apple's biggest quarter of the year, sales are expected to have decreased about 2% to $121.6 billion from a year earlier.

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During the annual meeting of Apple shareholders on March 10, Cook and lieutenants, including General Counsel Kate Adams, will provide company updates through a virtual presentation in addition to answering shareholder questions. At these conferences, shareholders will vote on Apple's board, executive pay, labor, and other issues.

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