![]() Among gaming apps, Pokemon Go, Jurassic World Alive, The Walking Dead Our World, and more use augmented reality to project characters or objects into the real world. ![]() In Apple’s existing ecosystem, there are already apps using augmented reality. To say that another way, Apple doesn’t need to create a market that doesn’t exist, it just needs to give purchasers of eye-wear a reason to buy its AR glasses. For anyone who doubts that a wearable headset could be a viable business, the regular eye-wear market is expected to reach $178 billion by 2023. Apple needs transformative products that grow revenue at a significant pace. Apple may be moving toward being a services company, yet last quarter 87% of the company’s revenue came from products. Most analysts expect Apple to generate about $255 billion of revenue this year, and for this figure to grow to about $265 billion in 2020. There are two different reports on Statista, one suggests the market for virtual and artificial reality will reach more than $200 billion by 2022, the other study suggests at least $160 billion by 2022. Normally a 60% or 85% annual growth rate would represent massive opportunity, but those aren’t the most optimistic projections. According to Zion Market Research, the AR market will grow at a rate of more than 85% annually through 2021, ultimately reaching $133 billion. A MarketWatch article reported that the AR market is expected to grow at better than 60% between 20. What everyone seems to agree on is the market is growing fast and is worth billions. Projections for augmented reality (AR) and virtual reality (VR) vary wildly. What Apple has become an expert at, is creating a wildly successful product and taking significant market share. From the iPod, to iPhone, to Apple Watch, the company has almost never created a product category. The iPhone and Apple Watch combined multiple devices into one product. Why does Apple want in on this market with such extreme competition? In a word… growth. The biggest names in tech are putting their money where their mouth is when it comes to artificial or virtual reality. There are other products from Microsoft's ( MSFT) HoloLens to Facebook’s (FB) Oculus products. It seems like Alphabet ( GOOGL) ( GOOG) had its shot with Google Glass and the consumer product didn’t gain traction. Haven’t we seen this product fail before? Apple glasses, or if the company has any sense, iGlasses, have the potential to dwarf other product categories. With so much focus on the next iPhone, or updates to the Apple Watch and AirPods, the next big product for the company might be something that replaces them all. The company has hinted at and made acquisitions that point investors in a direction, yet it gets little press. Whether you call it, “one more thing” or “the next big thing,” Apple ( NASDAQ: AAPL) seems to have a trick up its sleeve (or more specifically on its head).
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