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Apple secretly demoed it's VR headset to the top 100 Executives. $3000 reconfirmed, expecting 1 million sold first year. Little to no profit initially

https://www.bloomberg.com/news/news...res-top-100-meeting-watch-like-start-lfpgdgdb
There was a momentous gathering at Apple Inc. last week, with the company’s roughly 100 highest-ranking executives descending on the Steve Jobs Theater in Cupertino, California. The group, known as the Top 100, was there to see Apple’s most important new product in years: its mixed-reality headset.

The device was demonstrated for the group, marking a key milestone ahead of the headset’s public debut planned for June. It was an opportunity for the mixed-reality team to rally leaders around what could be the next major platform beyond the iPhone, iPad, Mac and Apple Watch.

Now, this isn’t the first time that the Top 100 has gotten a peek at the headset. Apple’s Technology Development Group — the team behind the mixed-reality initiative — has discreetly shown the product to the company’s top decision makers every year since 2018. (Such presentations are known as “Fight Club demos,” a nod to the Brad Pitt movie line that the “first rule of Fight Club is you don’t talk about Fight Club.”)

But this time was different. Earlier demonstrations were lower-key affairs, meant to show progress and secure the headcount needed to keep going. The latest preview took place in the Steve Jobs Theater, Apple’s biggest showcase, suggesting that a public unveiling is getting close. The executives attended the event ahead of heading to their annual offsite, held at a resort in Carmel Valley, California.

The demonstrations were polished, glitzy and exciting, but many executives are clear-eyed about Apple’s challenges pushing into this new market.

Mixed reality — a category that melds augmented and virtual reality — is still a nascent area and far riskier than Apple’s earlier attempts to establish new beachheads. With the Mac, iPod, iPhone, Apple Watch and iPad, the company was essentially creating a better version of a product that people were familiar with. With the headset, Apple will have to explain to consumers why they’d want to own such a product at all.
Moreover, the device will start at around $3,000, lack a clear killer app, require an external battery that will need to be replaced every couple of hours and use a design that some testers have deemed uncomfortable. It’s also likely to launch with limited media content.

With that in mind, executives are striking a realistic tone within the company. This isn’t going to be a hit product right out of the gate. But it could follow a similar trajectory as the Apple Watch.

That device started off fairly slowly, launching with mediocre apps, a jumbled interface, a sluggish processor and an undefined purpose. But over time, Apple improved the third-party app capabilities, simplified the operating system and added a faster processor. The product also found its role: It was a fitness tracker, health companion and an easy way to handle notifications. That clicked with consumers. In eight years, the Apple Watch went from a small portion of Apple’s business to a centerpiece of its strategy.
The company believes it can sell about a million units of the headset — likely to be dubbed the Reality Pro or Reality One — in its first year. At $3,000, that would mean revenue of about $3 billion. There would be little to no profit at first, given that the components in the device are so expensive and Apple won’t be seeking its typical margins just yet.

It’s hard to compare this directly with the Apple Watch, since that product is included within the company’s wearables, home and accessories division — alongside the AirPods, Apple TVs and other gadgets. But the wearables division has grown from about $10 billion when the Apple Watch debuted to $41.2 billion in the latest fiscal year.

Can Apple achieve that same success with the headset, a project that has cost the company nearly eight years and billions of dollars? We’re about to find out.

So this dropped, and we don't know if what was demoed to the top 100 Executives is what's going to be shown at WWDC in June, however, if it is than some of this news is rather peculiar.

Basically, the article implies that the Executives were impressed with what Apple showed, but were not sure people would know how to apply this into their daily tech lives, and not just that, but not sure Apple could message what benefit the VR headset will/would provide to consumers.

The article also implies that based on the demos the Executives saw, (we don't know if that demo was the final or near the final version or not) that the headset may actually be rushing out without having a solid foundation in place, which would be ironic if what was demoed will end up being shown in June, because many companies have recently reacted already to "beat" Apple to in the VR space by rushing their OWN headsets, or plans forward.

Also based on the demo shown, there's an assumption the headset will be launching without a killer app, though I'm sure there's one or two pieces of software they are going to push hard when the June WWDC presentation happens, but the Executives either didn't see them at the demonstration, or did see their software and concluded none of them had the potential for being a killer app.

Then there's this new info about an external battery that doesn't need to be charged every two hours, but the wording here is it may need to be "replaced" every two hours which is worse. But this seems strange to me unless they are using actual Duracell-style batteries for the headset, which would just be completely out of touch. I'm assuming that there's an error here and that they meant that in standalone mode you only have about 2-3 hours of battery life before needing to charge. Which would be much less completely insane, and make a lot more sense.

Despite this the estimated $3000 price has been reconfirmed, and Apple still expects to sell at least 1 million mixed-reality headsets in its first year. There's also still the expectation that Apple will become the market leader in the VR space given the current poor perception of the VR market.

I guess how this will ultimately end up working out will depend on if what the Executives saw at the secret meeting, was the final version that's going to be shown to us consumers in June or not. They were impressed with what they saw, but the flaws being reported here, and executives being skeptical if Apple has messaging to get people to buy it, makes me wonder if they were shown something that was the final, or close to the final version. I doubt Tim Cook, who reportedly ignored his design team to join the operations lead in pushing out the headset this year for his legacy, wants to retire from Apple with a rushed product with poor messaging as that would but a stain on his legacy. Although, Timmy boy has made some odd decisions here and there.

One other thing I noticed is they say Apple will likely not make much if any profits on the headset because of the components costs, but there's no way the components are that far ahead and that expensive. I speculate the most likely reason for Apple not making profits, is that the $3000 is likely going to be subsidized by carriers and retailers for monthly payments, which may also have upgrade plans, and people paying monthly may not be paying the full $3000 in the end, so Apple is taking those losses into account. If the components really are that expensive, than I expect that we will be amazed at the final specs on this thing.
 
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HeisenbergFX4

Gold Member
Huge Apple fan but

Desus And Mero Pass GIF by Bernie Sanders
 
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wait, so it's going to be $3,000, require a battery that needs to be changed out every couple of hours, and is uncomfortable... I love me some Apple products, but that's a hard sell!

but also... I'll make sure to post photos when it drops. I can guarantee you I'll see them around SF lol
 
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reinking

Gold Member
Even if it was launching with a killer app at $3000 would have to pass. There is too much competition that is out there for less that has a compelling offering already. Maybe Reality Two (Too?) will be more interesting.
 

LordOfChaos

Member
It does make sense to get it out and grow it over many years. Their long game is obviously glasses that you can wear as much as regular ones, but the tech for that sounds years and years off to do it with any amount of performance and quality. And also you have to start building that developer ecosystem now for a larger future. Like, what developer do they have that could do something even close to Call of the Mountain?
 
$3000 and little to no profit? I doubt that, but if true this is going to be an insane step-up from where we are now.

If the components is the real reason for the price AND a lack of profit at a price that high, it would have to be insane tech. There would be no other possibility.
 

Spukc

always chasing the next thrill
I apologize to all Sony fanboys for the PonyPig jokes I've made on this site. Apple fanboys are some of the he most ridiculous paypigs I've ever seen outside of PornHub.
try owning a mac mini , macbook, iphone, apple watch, airpods, homepod , apple tv and smart home compatible stuff like an ebike or car.. it just works.. can't state enough how great it is when you are into it
 

20cent

Banned
Then there's this new info about an external battery that doesn't need to be charged every two hours, but the wording here is it may need to be "replaced" every two hours which is worse. But this seems strange to me unless they are using actual Duracell-style batteries for the headset, which would just be completely out of touch. I'm assuming that there's an error here and that they meant that in standalone mode you only have about 2-3 hours of battery life before needing to charge. Which would be much less completely insane, and make a lot more sense.
Sounds more like a battery pack. If it brings back replaceable batteries on phones, like before they all copied Apple "design", then that's a good thing.
 

LordOfChaos

Member
are you joking 3000$ for a set and 1 million expected sales is little to no profit thats 3 billion $ in sales

Sounds like they just won't be charging their typical 30+% hardware margin on these, running closer to breakeven, and it's 3K because the components are really expensive.

It should be impressive, but def not getting it
 

StereoVsn

Member
I will wait for $1K device in 2025-2026. Gen 1 for $3K - yeah, there are enough people with money to waste, hopefully they can help develop a more mass market version. 😉
 
Like, what developer do they have that could do something even close to Call of the Mountain?

I mean, they can probably make a better game than Call of the Mountain to be honest. But they probably don't need to make games like that anyway. Since their headset is going to likely have (outside of surprises) to highest-raw power advantages, they can just make some of the best looking VR games even if shallow just off the tech, and then pay off third parties to move their games to their headset too who will optimize that tech as well.

When XR2 is the most powerful chipset in all untethered headsets, you'll probably need to buy a headset AND a $3000 PC to match what the Apple headset will due with it's M2 and other co-processors yet to be announced.
 
Very interested to see the specs and form-factor of this headset.

I'm actually surprised no one was able to leak what was shown given the suddenly demonstration at such a major venue, which apparently had journalists and others on the ground.

Zuckerberg needs to be taking notes.
 

Abriael_GN

RSI Employee of the Year
When XR2 is the most powerful chipset in all untethered headsets, you'll probably need to buy a headset AND a $3000 PC to match what the Apple headset will due with it's M2 and other co-processors yet to be announced.

Only, that $3,000 PC also does something else on top of being a blindingly expensive toy within a market that is already considered too expensive by most. 😂

point me towards a portable compact 16 inch laptop that has a 22 hour battery life

Imagine thinking this matters when it's inferior in every other way at price parity. Imagine thinking this "makes all other laptops look like a fucking joke."

Apple fanboys truly are the funniest comedy.
 
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kingyala

Banned
Sounds like they just won't be charging their typical 30+% hardware margin on these, running closer to breakeven, and it's 3K because the components are really expensive.

It should be impressive, but def not getting it
hahahahaaaa mate that plastic crap probably costs 500$ to make... apple prices are always inflated because they have a monopoly on the market just look at the specs of an iphone and compare it to their competitors phone they are usually a match but the prices are way inflated on the iphone... because they have established a monopoly on the market... a good example is psvr2 it costs 539$ and has even better specs than its competitors that cost 1000$+..
 
Only, that $3,000 PC also does something else on top of being a blindingly expensive toy within a market that is already considered too expensive by most. 😂

Yes, but you can use Apple Continuity, or use hand-off to your Apple Speakers, on a PC+headset.

But you can with an Apple+by itself standalone.

That will be the killer app. You can type your email in VR, and when you realize in-air tying is bad, you can continue your document, on your phone, and when you realize you need a keyboard, you can shift that document to your PC or Macbook, and then send it back to the VR headset to press the send button.

Mission Accomplished.
 

gothmog

Gold Member
Why do people give a shit what Apple charges? It's not like you haven't had almost 50 years to get used to their pricing.
 

Spukc

always chasing the next thrill
Only, that $3,000 PC also does something else on top of being a blindingly expensive toy within a market that is already considered too expensive by most. 😂



Imagine thinking this matters when it's inferior in every other way at price parity. Imagine thinking this "makes all other laptops look like a fucking joke."

Apple fanboys truly are the funniest comedy.
legit point me towards a laptop that is better designed then a macbook m2 pro 14 or 16 inch...
 
It will be interesting to see how an Apple product goes with outright purchasing only. The majority of iphone sales are backed by purchase plans of phone carriers over 1-3 year contracts and monthly payments. The majority of Macbooks are backed by business purchases or tax write offs etc. This thing sounds like it will need to stand on its own two feet outside of the traditional Apple sales channels for major purchases/prices. Good luck without a clear killer application, feature, game or consumer problem solved. I hope they have iPhone levels of advancement for AR/VR/MR but it is not sounding anything like that and just another competitor throwing a headset in the ring of evolutionary updates.
 
what games has apple made that makes you think this?

Call of the mountain isn't really a unique game in VR. Just has better graphics because of the tech. Something like Pavlov would be a better example of something Apple itself couldn't make, unless they have been developing games in the background all this time.

But again, they can just pay third-parties to use their tech, so they don't really need to make anything to be honest.
 

64bitmodels

Reverse groomer.
i take back all i said about this outselling quest 2 in 2 months....i was assuming that for the 1500 rumor. for 3000 yeah no one except the high class superfans will buy in.

sales will skyrocket tho when reality pro 2 comes out and reality pro 1 ends up on the used market for 900-1500
 
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