Analyst Says Apple’s AR Headset Will Contribute To Around 10 Percent Of The Company’s Business, But That Will Take Years
In terms of revenue, Apple’s AR headset and the successive models that will launch in the coming years are definitely not replacing the iPhone, but at least they will have some significance in terms of a new product category.
Even now, the first iteration of the mixed-reality headset is only set to bring in $3 billion in revenue, assuming Apple ships an estimated 100,000 units in the year at its rumored $3,000 price. Fortunately, the future looks bright, according to an analyst, as he believes this category will contribute around 10 percent of the technology giant’s business.
Apple’s AR headset lineup will not take 10 years to become a meaningful contributor to the company’s business
Shipping 100,000 units in a year might not convince any skeptic after reading that Apple generated $94.8 billion in revenue for the previous quarter, but analyst Gene Muster believes that it will take the AR headset some years to establish itself. Speaking to clients on Friday, Patently Apple reports that since consumers demand a more immersive experience from products, it will pave the way for a healthier headset market. By 2030, this product category could bring in some hefty change for Apple.
“It’s been eight years since Apple jumped into a new product category. On June 5 that will likely change when Apple is expected to preview its $3,000 developer version of a mixed reality headset at WWDC. Many investors are skeptical about the prospects of the device given headsets are currently a solution looking for a problem.
I believe the trend of more immersive consumer tech experiences will continue, which should pave the way for a robust headset market. By 2030, I believe the wearables/glasses segment could account for 10% of Apple’s sales (assuming they don’t release a car), a business similar in size to Apple’s Mac and iPad businesses today.”
Let us take Apple’s previous revenue figure and compare it to the AR headset’s shipment estimates. The device will only make $3 billion out of $94.8 billion, which is a measly 3.16 percent of total revenue, and that is assuming Apple sells 100,000 units every quarter, which is unlikely at this point.
Instead, Apple is likely banking on a cheaper AR headset that is slated to launch in 2025 , along with a pair of smart glasses. Apple appears to have some trouble with its AR glasses, particularly on the energy consumption side , but the company’s rumored plans provide some insight into how committed it is to this segment. For now, we can all agree that the AR headset will not take the place of an iPhone, but it could be Apple’s most significant product announcement in years.
Written by Omar Sohail