Meta Looking at Magic Leap as AR Supplier, Meta’s AR/VR Positioning, Apple Reality Headset BOM
Hello everyone. Welcome to a new week.
The news flow related to AR/VR headsets is picking up. Apple is widely expected to unveil its entry into the space in just two weeks at WWDC. My assumption continues to be that Apple’s headset will be unveiled as a “one more thing” at the end of an already-packed WWDC presentation (pre-recorded). The unveiling will likely kick off a wave of stories, tidbits, and related topics in the subsequent months. In today’s update, we kick things off with Neil’s thoughts on Meta reportedly looking to partner with Magic Leap for AR IP and contract manufacturing. The discussion then turns to Meta’s positioning in AR/VR with Apple about to enter the space. We conclude with chatter regarding the bill of materials (BOM) for Apple’s Reality headset.
Let’s jump into today’s update.
Meta Looking at Magic Leap as AR Supplier
Over at the Financial Times, here are Hannah Murphy and Patrick McGee:
“Facebook’s parent company is in talks to create a multiyear agreement with augmented reality start-up Magic Leap, as the social media giant continues to pour billions of dollars into its ambition to create an avatar-filled online world called the metaverse.
According to people familiar with early discussions, Meta is exploring ways in which Magic Leap could provide both intellectual property licensing and contract manufacturing in North America to help it build mainstream AR products.
Magic Leap produces custom components, including high-tech lenses and associated software, which are key technologies that may be required to build a metaverse. However, people with knowledge of the talks said the partnership is not expected to yield a specific joint Meta-Magic Leap headset
Two former employees said Magic Leap’s ‘biggest asset’ is the sophistication of its ‘waveguides’ — technology that allows thin glass in front of the user’s eyes to conjure up realistic images at different depths.”
Interesting timing for this news to come out just two weeks ahead of Apple’s headset unveiling. Up to now, Meta has garnered quite a bit of mindshare in the AR/VR space. That is going to change once Apple officially moves into the space. Since we are likely looking at a multi-month window between product unveiling and release, Meta would be right to be concerned about Apple freezing large swaths of the AR/VR market.
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The WSJ’s Report About Apple’s Headset, What’s Behind Apple Headset Skepticism?
Hello everyone. With WWDC kicking off in less than three weeks, today's update will go over some of the hoopla surrounding Apple's upcoming mixed reality headset. We begin with Neil’s thoughts on the WSJ’s recent report about the Apple headset. The discussion then turns to the skepticism surrounding the device and what may be driving such feelings. Let's jump right in.
The WSJ’s Report About Apple’s Headset
In an article headlined "Apple Is Breaking Its Own Rules With a New Headset," here are the WSJ's Aaron Tilley and Yang Jie:
“Apple in the coming weeks is expected to unveil what is perhaps the most experimental, unconventional product in its history: a so-called mixed-reality headset that resembles a pair of ski goggles and comes with a battery pack, people familiar with the matter say.
Apple’s launch plans break many of its traditions and rules about new products that have become the industry gold standard. Unlike other Apple products, the device is debuting in a still-experimental mode. Apple predicts slower adoption for the headset compared with the Apple Watch or the iPhone, both of which quickly became consumer must-haves. Taking seven years in development before hitting the market, it will be one of the most complex consumer products any company has ever sold.
The Apple headset will combine both augmented and virtual reality into a single device—a term the industry calls mixed reality. Users wearing the headset, for instance game players, will be able to experience their virtual worlds through the screen in the goggles, but also be able to simultaneously see the physical world around them thanks to outward facing cameras, said people familiar with the project.
Company engineers and executives have spent months preparing presentations with a demo version of the device for Apple’s upcoming annual software conference in June. But it isn’t expected to be delivered for most users until the fall at the earliest, people familiar with the supply chain said. Some Apple employees and suppliers have questioned whether the rollout could be delayed given the challenges with integrating the headset with new software, its production and the broader market, people familiar with the product’s development said. Apple could still make changes to its timeline.”
If there were still questions as to whether or not a headset reveal at WWDC was a go, this article should settle any remaining doubts. However, instead of publishing that one item across a few paragraphs, the WSJ decided to turn it into something of an exposé on how the upcoming headset somehow required Apple to break its own rules.
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More on Apple Reality, Why the Apple Reality Name?, Luxshare Reportedly Gains Apple Reality Contract (Daily Update)
Hello everyone.
The latest Above Avalon Report, "Apple's Reality (Headset) Plans," was sent via email to all members last Wednesday (11:30 pm ET). Even though the report is only a day old, there are already a few updates worth pursuing. In addition, incoming member questions pointed to interest in one part of the report in particular (what Apple may call its first headset). We will cover that in today’s update.
The podcast version of the report was published earlier today. It came out to 31 minutes of audio. As a reminder, the Above Avalon Reports podcast is available to everyone who has the podcast add-on attached to their membership. If you have the add-on, you previously received an email (from “Neil Cybart via Transistor”) with instructions on getting the podcast up and running in various podcast players. The process takes literally five seconds. Any questions or issues, let me know. If you don’t have the podcast add-on and want access to the two private podcasts, fill out this form.
More on Apple Reality
The latest Above Avalon Report has been in the making for a few months. For much of 2023, June had been penciled in my calendar as a possible unveiling point for a MR (mixed reality) Apple headset. In recent weeks, as the news cycle regarding this product turned silly, that WWDC unveiling timeline solidified.
Originally, the plan was to keep the report focused primarily on the product itself (the why behind the initiative, use cases, challenges). However, while putting together the finishing touches, a product strategy discussion needed to be included. There is a lot to discuss regarding how a headset fits within the Grand Unified Theory of Apple Products and the Apple Innovation Feedback Loop – both theories are still very much alive even though we haven’t talked about them much over the past year or so. If there are questions about the strategy section of the report, please send them my way. They can be used to guide additional discussion in the coming weeks.
Two new items worth discussing today:
New artist renderings for what Apple Reality may look like.
Why would Apple call the device Apple Reality in the first place?
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Apple’s Reality (Headset) Plans (Above Avalon Report)
An examination of Apple’s upcoming entry into AR/VR headsets.
Written by Neil Cybart – April 12th, 2023
In the coming months, Apple is expected to unveil its next wearables chapter with an AR/VR headset. Having already launched wearable devices designed for the wrist (Apple Watch) and ears (AirPods), Apple will soon expand its focus to the eyes (Apple Reality). This report serves as a primer for Apple’s play for the “eyes” - a headset delivering AR/VR experiences.
Note: This report references terms including AR, VR, MR, eye wearables, and Apple Reality. Here is a short explanation of the key differences:
AR (augmented reality): Overlays digital objects/context on top of one’s visual and auditory surroundings.
VR (virtual reality): Offers a digital alternative to one’s visual and auditory surroundings.
MR (mixed reality): A combination of AR/VR, and the goal is to enhance the wearer’s presence.
Face / eye wearables: Devices that include headsets/visors/goggles/glasses.
Apple Reality: The name Apple may give to its MR headset.
Background
The discussion surrounding AR and VR has been noisy and unnecessarily complicated because four devices have been talked about in the press seemingly interchangeably:
Smart Glasses. Lightweight and thin glasses that display small snippets of text, information, and symbols in the wearer’s peripheral vision. This device is, in theory, closest in utilization to that of Apple Watch.
AR Glasses. Lightweight and thin glasses that enhance one's surroundings by adding a contextual layer on top of reality. This device is a more enhanced and capable version of smart glasses.
VR Headsets. A historically bulky contraption worn on the face that removes the wearer from their surroundings. Meta Quest is an example of a VR headset.
MR (AR/VR) Headsets. A historically bulky contraption worn on the face combining VR and AR. Microsoft HoloLens is an example of a mixed reality headset, but some will say the device is closer to a bulky AR headset.
Apple is believed to be working on two distinct products:
MR headset “Apple Reality” (to be unveiled soon).
Pair of AR glasses (to be unveiled in a few years when the technology is ready).
As a sign of how ambitious Apple’s goals are in the AR/VR space, the company
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Apple Announces WWDC 2023, WWDC 2023 Artwork Clues, Early Expectations for WWDC 2023 (Daily Update)
Today’'s update (March 30th) is dedicated to discussing Apple’s WWDC 2023. After going over the WWDC 2023 format, we look at this year’s WWDC artwork for some clues as to what may be discussed during the keynote. This brings us to a broader discussion involving Neil’s expectations for WWDC 2023 regarding a mixed reality headset.
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