Apple Announces May Product Event, Apple Vision Pro Sales Noise, A Few Suggestions for Apple

Hello everyone. We will begin today’s update with some words on Apple’s upcoming product event. The discussion will then turn to Apple Vision Pro.

Apple Announces May Product Event

Yesterday, Apple sent out invites to a product event taking place virtually on May 7th.

 
 

Based on the event invite artwork, it’s safe to say we are going to see a new Apple Pencil and some iPad updates. Rumors point to Apple updating the iPad Pro and iPad Air segments of the iPad line.

Tim Cook’s tweet about the event hints at an Apple Pencil update.

 
 


Last October, Apple unveiled an Apple Pencil with a USB-C charging port which had fewer features than the Apple Pencil (2nd gen). Apple didn’t call the new pencil Apple Pencil (3rd gen). Instead, it’s Apple Pencil (USB-C). This would suggest that we may see a true 3rd gen Apple Pencil next month. For much more on Apple Pencil strategy, check out the October 17th update where we take a deep dive into all things Apple Pencil.

Taking a step back, expectations for this

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Apple Vision Pro Launch Date Announced, New Vision Pro Details, What About Vision Pro Demos?

There is Vision Pro news to go over. We begin with Neil’s thoughts on Apple’s Vision Pro launch date. The discussion then goes over several new details disclosed about the device. We conclude with a look at Vision Pro demos at Apple Stores.

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Apple Considering Supplier Shift for Vision Pro Displays, Vision Pro and China, Thursday Q&A

We kick things off with some news on the Vision Pro supply chain front. While things can certainly change between now and the Vision Pro launch next year, we are getting a better view of what appears to be a challenge manufacturing Vision Pro at scale: OLEDoS (OLED on Silicon) displays. The discussion then goes over Neil’s thoughts on Vision Pro manufacturing and assembly in China. We conclude with the latest installment of Thursday Q&A in which Neil answers the following questions from Above Avalon members:

  • What’s motivating Apple’s deal strategy with live sports?

  • Do you agree that it has become increasingly challenging to estimate installed base totals for key Apple product categories? Will Apple change its approach? Is the lack of disclosure related to antitrust issues?

  • Did Apple change its commentary regarding installed base figures in the last earnings call?

Apple Considering Supplier Shift for Vision Pro Displays

Here’s The Information:

“When Apple dealt with Chinese manufacturers in the past, it was to buy low-level components such as small metal parts, paper boxes and batteries. For advanced parts such as displays and chips, the iPhone maker turned to firms headquartered in the U.S., Japan, South Korea and Taiwan.

Times are changing.

Apple is currently testing advanced displays made by two Chinese suppliers for possible inclusion in future models of its Vision Pro mixed-reality headsets, said two people with direct knowledge of the matter. The two suppliers, BOE Technology and SeeYa Technology, are among a crop of Chinese companies that are making high-end technologies, spurred by government policies designed to reduce China’s reliance on foreign tech while also making its homegrown firms more competitive.”

The Information’s article suffers from what has unfortunately become a norm in the Apple news sphere: narrative-based writing. A piece of reporting is wrapped in an opinion-based narrative. In this case, the new reporting is BOE Technology and SeeYa Technology working with Apple on a possible future supplier arrangement with Vision Pro in mind. The story used to wrap the reporting in is that Apple is benefiting from Chinese policies put in place to hurt the U.S. It’s quite the stretch. We will talk more about China shortly.

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Apple Cornering Market on Premium Headset Components, Disney's Troubles Grow, Apple’s Leverage Against Disney

Hello everyone. We kick things off with Neil’s thoughts on how competitors may struggle going up against Vision Pro from a hardware perspective due to Apple’s supply chain actions. The discussion then turns to Disney and the growing list of issues plaguing the company. The situation is creating a dynamic that be considered advantageous to Apple.

Apple Cornering Market on Premium Headset Components

As reports of severe Vision Pro supply constraints continue to be digested, there is a corollary found with the news that hasn’t received much attention.

Competitors face an uphill battle to even assemble the supply chain, components, and partners that would be needed to produce a headset that can go up against Vision Pro. Yesterday’s discussion touched upon this briefly when talking about Vision Pro’s supply issues likely not representing much of an opening for competitors in 2024.

There are already two examples that we can point to. (This likely won't be the exhaustive list):

  1. OLEDoS (two displays are found in Vision Pro – one for each eye). Sony is reportedly the only company supplying the postage stamp-sized OLED on Silicon displays. The lack of production capacity is said to be a major factor for Vision Pro supply constraints.

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How Vision Pro Can Impact Apple’s Other Products

Hello everyone. We are going to do something different today. One topic that has been on Neil’s mind the past 10 days or so is how Vision Pro can impact Apple’s ecosystem. After just a few minutes using Vision Pro, it became clear that this device was going to encroach on iPhone, iPad, and Mac use cases. Current Apple devices feel dated compared to Vision Pro. That doesn’t necessarily mean that Apple’s other product categories have expiration days. In today’s update, we will explore that topic.

How Vision Pro Can Impact Apple’s Other Products

Watching the WWDC keynote, one thing that jumped out at me was how Apple positioned its software platforms and product categories. There was a prevailing theme / focus found with each category:

  • Apple Watch / watchOS = health/fitness

  • iPhone / iOS = communication/identity

  • iPad / iPadOS = versatility

  • Mac / macOS = performance

  • AirPods = audio

  • tvOS = video consumption

Those focus areas aren’t a new development for WWDC 2023. Apple has spent years laying the groundwork for giving each of its product categories key roles to play that other Apple products aren’t in a great position to handle.

The Apple Watch is one of the easier examples to discuss.

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Apple Acquires AR Headset Maker Mira, Vision Pro Supply Constraints, Apple and Disney M&A Chatter Grows

Hello everyone. We will talk about three Apple-related news items that came out in the past week.

Apple Acquires AR Headset Maker Mira

Here's The Verge:

“Apple has acquired Mira, a Los Angeles-based AR startup that makes headsets for other companies and the US military, according to a posts from the CEO’s private Instagram account yesterday seen by The Verge and a person familiar with the matter. Apple confirmed the acquisition.

The news comes just one day after Apple unveiled the Vision Pro, a $3,499 mixed reality headset that the company has billed as a new ‘spatial’ computing platform. It’s unclear how much Apple paid for Mira, which raised about $17 million in funding to date. Jony Ive, Apple’s former design chief, was an advisor to the startup at one point, according to two former employees who requested anonymity to speak without the company’s permission.

Apple sent The Verge its typical statement it gives when it buys a company: ‘Apple buys smaller technology companies from time to time, and we generally do not discuss our purpose or plans.’”

This has all the makings of being primarily a talent acquisition. It is certainly possible that Apple also got its hands on some patents. However, Mira’s focus on being a design-led, scrappy startup piecing together smartphone components and $15 fish bowls to come up with an AR headset with a visor-like shield speaks more to ingenuity and ideas being their most valuable asset.

Mira’s CEO and co-founder, Ben Taft, is all-in on AR while showing heavy skepticism of the metaverse/VR.

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