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Apple has abandoned its Augmented Reality (AR) and Virtual Reality (VR) headsets projects, according to the Taiwanese DigiTimes news site. The company reportedly broke its AR / VR operating helmet segment in May, four months after the departure of Avi Bar-Zeev, a key member of the team that contributed to the joint development of Microsoft HoloLens.
The fact that the company has stopped its efforts is not surprising as it is an emerging market that reaches only niche users. But could this decision give Apple an old-fashioned appearance alongside companies such as Microsoft, Facebook and Google of Alphabet?
What was the initial plan of Apple?
Apple has never clearly defined its AR / VR projects, but has acquired several AR / VR companies, brought together a team of AR / VR experts, filed patents for an AR / VR headset for iPhone and the new iPhones for AR. Extensive applications to depth cameras and computer vision chips.
The company also launched ARKit, an Application Programming Interface (API) that allows iOS developers to develop advanced AR applications. Google offers a similar API called ARCore for its high-end Android devices.
According to a CNET report from last year, Apple is developing a stand-alone T288 wireless AR / VR headset offering an 8K display for each eye. This means a generation change from any other AR / VR headset, since Microsoft's new HoloLens 2 and Facebook's Oculus Quest only offer 1440p displays.
CNET claimed that Apple could launch the headset in 2020. However, DigiTimes said the device was not light enough and that it could not work optimally without the support of the 5G. The production costs should have been too high. As a result, Apple rejected the project and transferred the team members to other areas.
Apple's actions reflect industry's general concerns
Facebook was facing similar obstacles in its secret AR plans. Already in 2017, CEO Mark Zuckerberg said that Facebook "would like to someday develop glasses, but that it was missing" science or technology today "to develop an ideal product. said it might take another five to seven years to get this technology.
Facebook is more confident about the virtual reality market, where it has been offering commercial headsets since 2016. The company has had a difficult start, but the SuperData research company expects Facebook to send more of this year's news. 39, one million Oculus Quest headsets standalone. Apple seems to be more interested in AR headsets and "mixed reality" than VR; so it was probably never planned to challenge Facebook in this niche market.
In the AR market, Microsoft has a first-mover advantage with HoloLens, first introduced to the developer market three years ago. He launched HoloLens 2 earlier this year, but for $ 3,500, the device is still only for developers and it's hard to know when the company will launch a cheaper version for the average consumer.
Microsoft has also encouraged third-party vendors to produce mixed-reality Windows headsets (which are essentially VR headsets), but these headsets disappeared from Microsoft stores earlier this year, suggesting that these virtual reality dreams are also dead. .
Google had tried to break the AR market earlier than Microsoft – with Google Glass in 2013. But the $ 1,500 device was a fiasco because of its high price, unpleasant appearance, and privacy concerns. Google introduced Glass to the enterprise market two years ago, but the device is still supported only by a handful of developers.
Google has also expanded its virtual reality business with Daydream third-party headsets, but these devices have been largely replaced by Facebook's Oculus devices, Sony PlayStation VR headsets and HTC Vive headsets.
The decision of Apple was not a surprise
In simple terms, the AR / VR market for new technology companies remains an unknown territory. Earbuds are useful for some professional users, but for the general public, they are still too bulky and expensive. Virtual reality headsets attract gamers and technology enthusiasts with thick handbags, but in the near future, they will likely remain niche devices.
Apple has three priorities: revive consumer interest in the iPhone, extend the ecosystem of software services to increase user loyalty and increase shareholder value through larger buybacks and dividends. This is why it has dramatically reduced page-related expenses, such as Project Titan's automotive division, which was reduced early in the year, and puts an end to speculative projects such as helmets AR / VR.
With ARKit, Apple will continue to invest in the money recovery market, but it is likely to avoid large hardware projects until the market is mature and the technology is ready.
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Suzanne Frey, a member of Alphabet's executive board, is a director of The Motley Fool. Teresa Kersten, a partner of LinkedIn, a subsidiary of Microsoft, is a member of The Motley Fool's board of directors. Randi Zuckerberg, former director of market development and spokesperson for Facebook, sister of CEO Mark Zuckerberg, is a board member of The Motley Fool.
This article was written in English by Leo Sun and published on Fool.com July 15, 1919. It has been translated so that our German readers can participate in the discussion.
The Motley Fool owns shares and recommends Alphabet (A and C shares), Apple, Facebook and Microsoft. The Motley Fool offers the following options: Long January 2020 calls $ 150 on Apple and short January 2020 $ 155 calls on Apple.
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