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

An Above Avalon membership is required to continue reading this report. Members can read the full report here. An audio version of this report is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.

(Members: Reports are always accessible by logging into Slack. If you haven’t logged into Slack before, fill out this form to receive an invite.)


Above Avalon Membership

Payment is processed and secured by Stripe. Apple Pay and other mobile payment options are accepted. Special Inside Orchard bundle pricing is available for Above Avalon members.

Member Privileges and Benefits

  • Receive Exclusive Daily Updates. The cornerstone of Above Avalon membership is access to Neil’s exclusive daily updates about Apple. Updates are sent via email and go over current news and developments impacting Apple, its competitors, and the industries Apple plays in (or will play in). Approximately 200 daily updates are published throughout the year. Sample daily updates can be viewed here, here, and here.

  • Receive Exclusive Reports. Members have access to Neil’s reports, which are in-depth examinations of Apple's business, product, and financial strategy.

  • Access Private Podcasts. Members have the option of attaching a podcast add-on to their membership in order to receive the daily updates and reports in audio form.

  • Access Neil’s Earnings Model. Members have access to Neil’s working Apple earnings model (an Excel file that also works in Numbers). The model is fully functional and adjustable and provides the ability to alter earnings drivers.

  • Email Priority. Receive priority when it comes to having email questions and inquiries answered. Neil personally answers all inquiries, including customer service matters related to your membership.

  • Archive Access. Read 1,400+ daily updates and reports that have been previously sent to members. The Above Avalon member archive is unmatched in the marketplace in terms of the sheer amount of Apple analysis found in one location. The daily updates archive can be viewed here while the reports archive is available here.

  • Member Forum Access. Join other Above Avalon members in an active forum containing in-depth discussion and debate. Neil moderates and participates in the forum. The forum is run through Slack and can be accessed here.

  • Virtual Meet-ups. Talk with Neil about Apple and other related items in virtual meet-ups held via Slack throughout the year.

  • Above Avalon Support. Play an active role in supporting Above Avalon as an independent source of Apple analysis. Above Avalon is fully sustained by its members.