The major players in the AR and VR headset space are struggling to get any traction going, with one analyst believing that Apple’s imminent release of the rumored ‘Reality Pro’ is perhaps the last hope to get this product category running with any momentum. The same analyst recently reported that Apple’s AR headset had been delayed and is expected to see a release in the third quarterof this year.

Competing VR headset shipments were 40 percent lower than expected last year

Apple’s AR headset seemingly possesses the right amount of positive light, with TF International Securities analyst Ming-Chi Kuo stating that the company’s head-mounted wearable is the ‘last hope’ for convincing investors that something like this can grow in the market. Unfortunately, Kuo also says that a string of grim numbers is a reminder that AR headsets may not thrive in popularity.

“There is currently insufficient evidence to suggest that AR/VR headsets can become the next star product in consumer electronics in the foreseeable future. Apple’s announcement event is likely the last hope for convincing investors that the AR/MR headset device could have a chance to be the next star product in consumer electronics.”

One of the reasons why Kuo may think highly of Apple’s AR headset is because of the technology giant’s propensity to hit a home run with any product launch. During CEO Tim Cook’s tenure, we saw a brand new smartwatch category materialize, which is now the most popular device in the wearable space.

We also witnessed Apple getting rid of the 3.5mm audio jack but introducing wireless earbuds called AirPods, which Apple is the current market leader of at this time. The transition from Intel to ARM-based M-series of chips left critics doubtful as previously, companies had tried to penetrate this market but failed miserably. In short, it is easy to believe that whatever market Apple enters, it dominates, but this might be a different story.

With its rumored price tag in the $3,000 and $4,000 range, the AR headset may not be a popular pick / Image Credits - @Hanstsaiz (Twitter)

Kuo says that Sony’s PS VR2 production plans for 2023 have been cut by 20 percent, while shipments of the Meta Quest Pro may only reach 300,000 units throughout its entire life cycle. Additionally, the analyst mentions Pico, China’s biggest AR headset brand, stating that its shipments in 2022 were more than 40 percent lower than expected. The analyst earlier estimated that the headset would ship up to just 300,000 units in the year, but somehow, he places importance on Apple’s AR headset launch.

Even with Kuo predicting that it will be priced between $3,000 and $4,000, Apple will only rake in $1.2 billion, and that is an overly-optimistic figure on our part. Despite forecasting a weak launch, Apple was earlier said to be under immense pressure to ship the AR headset. It is possible that the company’s investors wanted this device in the market so that competitors would not have the edge over Apple.

This may be the reason why CEO Tim Cook and CTO Jeff Williams refused to listen to the design team when they mentioned that the product was not ready to launch in the market. Fortunately, Apple has said on multiple occasions that it is fully invested in this product space, and according to a previous report, the second AR headset model is said to be much cheaperthan its predecessor. Now, it is only a matter of getting the first version to launch.

News Source: Ming-Chi Kuo