Tim Cook teases an App Store full of AR apps
Discussing Apple's plans for Augmented Reality (AR) today, CEO Tim Cook said that the App Store currently has 14,000 such apps available and that this number will rise as Apple continues to invest in this space. AR places a layer of data on top of a real-world image. As an example, Google offers a feature called Live View that works with Google Maps for those seeking walking directions.
Tim Cook says Apple sees "a lot of potential" in AR
With a background consisting of real-life images from a handset's front-facing camera, directions are superimposed on top of the images along with the names of certain well-known landmarks. In response to a reporter's question about the company's plan for the metaverse, Cook said, "We see a lot of potential in this space and are investing accordingly,"
Apple's mixed reality headset could be unveiled later this year
In 2022 or 2023, Apple will reportedly unveil its mixed reality device that offers AR along with Virtual Reality (VR). VR is a completely fake environment that is supposed to confuse the user into believing that the completely made-up environment he is viewing is real. The mixed reality device will reportedly be followed up the next year with the long-awaited Apple Glass, a device that resembles an ordinary pair of glasses but has AR capabilities.
Cook also said today that Apple's research and development focus has been on a combination of hardware, software, and services. The chief executive said, "That's where the magic really happens. There's quite a bit of investment going into things that are not on the market at this point."
Now that Apple has over 1 billion active iPhone units, it is in a great position to benefit from recurring subscription charges and other fees offered to consumers in Apple's Services segment. For the just announced fiscal first quarter of 2022, Apple announced a strong 24% annual gain in services revenue topping the 11% year-over-year gain it reported in iPhone sales from October through December.
AR apps could give Apple's services unit a shot in the arm
It was a brilliant strategy on Apple's part and devices offering AR like the mixed reality headset and Apple Glass should surely increase revenue coming from apps that are sold to owners of these devices. Even though the experience that consumers had with Google Glass was not always pleasant (getting kicked out of bars and theaters and being called "glassholes" surely was not fun), Apple might be able to develop enough apps before the release of the product to make the device more useful to users immediately on its release.
Immersive AR services can be developed for apps such as Apple Fitness+ and video streaming apps could also help Apple unlock the potential of its mixed reality headset and AR glasses. Neil Shah of Counterpoint Research says that strength in AR-based apps could result in services revenue topping iPhone revenue in five years. Half a decade might be too optimistic a forecast. Consider that the iPhone took in $76.63 billion during Apple's fiscal 2022 first quarter compared to $19.52 billion in services gross.
It might not be too optimistic if the mixed reality headset and AR glasses are both released in the next couple of years. Highly respected TF International analyst Ming-Chi Kuo says that the headset will be introduced late this year and it will be equipped with the computing power of a Mac. That sounds intriguing, yes. But as Bloomberg's Mark Gurman pointed out, new products unveiled by Apple usually encounter a delay before their first release.
Some, like AirPower, never appear and end up canceled. But the truth is that the mixed reality headset is just too important to the future of Apple to become vaporware. The AR focused (no pun intended) Apple Glass, however, could arrive as late as 2025.
FCC OKs Cingular\'s purchase of AT&T Wireless
Things that are NOT allowed: