Apple – Apple (AAPL) First VR Headset to Be Area of interest Precursor to Eventual AR Glasses
An attendee makes use of a hand monitoring characteristic with Fb’s Oculus Quest VR headset in the course of the Oculus Join 6 convention in San Jose, California, on Sept. 26, 2019.
Photographer: Michael Quick/Bloomberg
Photographer: Michael Quick/Bloomberg
Apple Inc.’s first crack at a headset is designed to be an expensive, area of interest precursor to a extra formidable augmented actuality product that may take longer to develop, in response to folks with data of the matter.
The preliminary machine has confronted a number of growth hurdles and the corporate has conservative gross sales expectations, illustrating how difficult will probably be to deliver this nascent shopper expertise to the lots.
As a largely digital actuality machine, it is going to show an all-encompassing 3-D digital atmosphere for gaming, watching video and speaking. AR performance, the power to overlay photos and data over a view of the true world, will likely be extra restricted. Apple has deliberate to launch the product as quickly as 2022, going up towards Fb Inc.’s Oculus, Sony Corp.’s PlayStation VR and headsets from HTC Corp., the folks mentioned. They requested to not be recognized discussing non-public plans.
Apple’s typical playbook entails taking rising shopper expertise, resembling music gamers, smartphones, tablets and smartwatches, and making it dependable and straightforward to make use of for everybody. This time, although, Apple isn’t seeking to create an iPhone-like hit for its first headset. As a substitute, the corporate is constructing a high-end, area of interest product that may put together outdoors builders and shoppers for its eventual, extra mainstream AR glasses.
The plans recommend that Apple’s first headset will be far dearer than these from rivals, which price about $300 to $900. Some Apple insiders imagine the corporate may promote just one headset per day per retail retailer. Apple has roughly 500 shops, so in that situation, annual gross sales can be simply over 180,000 models — excluding different gross sales channels. That might put it on par with different expensive Apple merchandise, such because the $5,999 Mac Professional desktop laptop. An Apple spokesman declined to remark.

Attendees go to the Sony PlayStation digital actuality gaming stand on the Gamescom laptop video games trade occasion in Cologne, Germany, on Aug. 20, 2019.
Photographer: Krisztian Bocsi/Bloomberg
Apple is aiming to incorporate a few of its most superior and highly effective chips within the headset together with shows which are a lot higher-resolution than these in current VR merchandise. A few of the chips examined within the machine beat the efficiency of Apple’s M1 Mac processors. The corporate has additionally designed the headset with a fan, one thing the corporate normally tries to keep away from on cellular merchandise, the folks mentioned.
The headset, codenamed N301, is in a late prototype stage, however will not be but finalized so the corporate’s plans may change or be scrapped fully earlier than launch. The AR glasses, codenamed N421, are in an early stage referred to as “architecture,” which means Apple remains to be engaged on underlying applied sciences. This product is a number of years away, in response to the folks, although Apple has beforehand focused as early as 2023 to unveil it.
The highly effective processors and the inclusion of a fan initially led to a tool that was too massive and heavy with some concern about neck pressure in early testing. Apple eliminated the area VR devices normally reserve for customers who have to put on eyeglasses, which introduced the headset nearer to the face and helped shrink the dimensions. And to handle shoppers with poorer eyesight, it developed a system the place customized prescription lenses might be inserted into the headset over the VR screens, the folks mentioned.
This may expose Apple to laws governing the sale of merchandise with prescriptions. The corporate sometimes sells its units in dozens of nations, lots of which have totally different prescription guidelines. Apple can also be discussing how it might implement prescriptions on the level of sale on-line and in retail shops.

Apple initially deliberate to incorporate much less highly effective processors and offload a lot of the work to a hub in a consumer’s residence that might wirelessly beam content material to the headset. However that concept was squashed by Jony Ive, Apple’s design chief on the time, Bloomberg Information reported final yr. The headset is designed to work as a standalone machine, which means it might function on a battery quite than be plugged right into a wall or a Mac. That’s much like Fb’s newest VR product, whereas Sony’s requires a PlayStation gaming console.
Learn extra: Apple’s AR and VR Headset Plans Altered by Inner Variations
To additional scale back the machine’s weight, Apple is planning to make use of a cloth exterior. That’s a departure from the steel designs Apple makes use of for many merchandise, although it has used plastic for units like AirPods, that must be gentle, and materials for the HomePod speaker to enhance acoustics.
Prototypes of the headset, a few of that are concerning the measurement of an Oculus Quest, embrace exterior cameras to allow some AR options. The corporate is testing utilizing the cameras for hand-tracking and is engaged on a characteristic the place a consumer can sort just about within the air to enter textual content. It’s unclear if that perform will likely be prepared for the primary model of the machine or if it is going to ever go away the exploratory stage.
The Covid-19 pandemic has disrupted some growth with Apple {hardware} engineers solely with the ability to work on sure days from the workplace. The corporate has additionally confronted delays conducting consumer testing and knowledge assortment. That has slowed some choices within the engineering course of.
The corporate can also be nonetheless grappling with what content material and performance it intends to ship with the machine. Digital actuality remains to be a considerably nascent expertise, with content material past video games nonetheless comparatively restricted. Final yr, Apple acquired an organization known as NextVR, which recorded occasions resembling concert events and sports activities video games in digital actuality. It’s additionally mentioned bundling an App Retailer with the machine, which runs on an working system dubbed “rOS” inside the corporate.
If Apple goes forward with the VR headset, it might be a precursor to an eventual pair of AR glasses — a product that the corporate sees as way more mainstream but in addition harder to launch. Microsoft Corp.’s HoloLens 2 and Magic Leap’s headset, which emphasize AR over VR, retail for $3,500 and $2,295 respectively. HoloLens largely focuses on work use circumstances nonetheless, whereas Magic Leap fell effectively in need of the early hype and slashed jobs final yr.

A customer tries a Magic Leap One in the course of the Virtuality Paris 2019 present on Nov. 21, 2019 in Paris, France.
Photographer: Chesnot/Getty Photographs Europe
Apple first added AR to the iPhone in 2017, permitting new cellular video games and apps like these for just about putting furnishings in your front room earlier than shopping for it. Apple Chief Govt Officer Tim Cook dinner has mentioned each digital and augmented actuality have potential, however that AR is the bigger alternative.
AR glasses should be filled with small, highly effective and environment friendly electronics to overlay notifications, map instructions and different data whereas supporting web connectivity and powerful battery life. That’s an enormous technical problem. Even Oculus, which launched its first all-in-one VR headset in 2019, gained’t embrace AR options in its first glasses this yr.
Attending to that time requires years of labor on lenses, {hardware} and software program, part miniaturization, manufacturing methods and content material creation. Critically, getting most individuals to put on a pc on their face, even a small one, is tough. That, partly, doomed Google’s early try at shopper AR glasses a number of years in the past.
By growing a much less mainstream preliminary headset, Apple can put money into the underlying applied sciences, shopper training, content material growth and developer relations to offer its eventual AR glasses the most effective alternative to achieve success — when they’re prepared.