Apple's first AR/VR headset is one of the most anticipated products in the tech industry. While the company has not yet confirmed the release date, Bloomberg's Mark Gurman provided some insights in his latest "Power On" newsletter. According to Gurman, the first AR/VR headset from Apple is expected to sell 1 million units in the first year, with almost no profit in the initial stage.
Expected Sales Volume and Revenue
Gurman stated that Apple estimates the headset to sell 1 million units in its first year, which translates to $3 billion in revenue. The estimated price of the headset is $3,000, making it one of the most expensive consumer products from Apple. The high price is due to the expensive components that the headset will feature.
No Profit in the Initial Stage
Although Apple expects to generate $3 billion in revenue from the headset, Gurman emphasized that there would be almost no profit in the initial stage. Apple's objective with the headset is not to earn profit but to establish a strong foothold in the AR/VR market. Gurman mentioned that Apple is not aiming to pursue traditional profit margins in the emerging market.
A Dud in the Making?
Despite the expectations of high sales volume, Gurman labeled Apple's first headset as "dud." Gurman believes that the headset is expensive, and the current AR/VR market is not mature enough for consumers to accept such products. Gurman's opinion is debatable since many tech enthusiasts are eagerly awaiting the release of the headset. However, Gurman's view reflects the reality that the AR/VR market is still in its infancy, and the success of the headset will depend on consumer adoption.
Possible Name of the Headset
Gurman also speculated on the possible name of the headset. According to him, the headset may be called Reality Pro or Reality One when it goes on sale. While these are not the official names, they do provide an insight into what Apple might be thinking when naming the headset.
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