Apple may alter the AR competition
Apple is stockpiling resources to make a splash in the augmented reality market. The company is not only marshaling internal resources behind its AR efforts, but also hiring talented outsiders and acquiring companies with expertise in AR hardware, 3D gaming and virtual reality software, Bloomberg reported Monday.
The new outsiders include a former Dolby labs executive, engineers who worked virtual reality headsets for Google and Microsoft, and some Hollywood digital effects experts, the report notes.
"We've been waiting for Apple to launch something in AR after its acquisition of a number of AR companies, including Metaio and FlyBy Media," said David MacQueen, executive director for apps and media at Strategy Analytics.
"Right now, there's no company really taking a strong position in AR, at least from a consumer perspective," he told TechNewsWorld. "The most advanced product is Microsoft's HoloLens, but that is squarely aimed at enterprise users and has a price tag to match."
Apple Likes Fat Margins Those higher price tags for AR products could be an attraction for Apple, which is fond of high prices and the high margins that often accompany them.
While shipments of virtual reality headsets will outpace their AR counterparts from 2016 to 2021, the market for AR headsets will be larger, growing from $2.1 billion to $18.6 billion, according to a five-year forecast IDC released last week.
"With all the technological enhancements, there will be a wide range of products and price points," said Jitesh Ubrani, a senior research analyst at IDC.
"VR setups already range from sub-(US)$100 to more than $1,000, and though it's too early to tell, the lowcost experiences may prove to be inhibitors rather than promoters of the technology as they can potentially disappoint first time VR users," he continued.
"On the other hand, due to the sophistication of the hardware, most AR headsets are expected to cost well over $1,000," Ubrani explained. "This makes the technology far less accessible to consumers initially, though that's probably for the best as the AR ecosystem and wide social acceptance are still a few years aw ay."
Mainstream Reality Augmented reality makes sense for Apple on another level, too, noted Bob O'Donnell, chief analyst at Technalysis Research.
"Things like the HTC Vive and Oculus Rift are cool, but they're clearly not a mainstream Apple-like product," he told TechNewsWorld.
With AR, a user remains present in the real world and there's an opportunity to interact with people and real-world objects, said Ross Rubin, the principal analyst with Reticle Resear ch.
"In VR, the surroundings are completely replaced. That's great for game play and some simulations, but AR opens up far more possibilities," he told TechNewsWorld. "Ultimately, the two technologies may merge into a mixed reality that lets in a lot, a little, or none of the real-world surroundings."
Augmented reality also is better suited for a mobile environment.