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Apple To 'Immediately' Dominate High-End AR Headset Market With Its First Model, But Company Will Also Benefit Meta's Business

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A few days from now, Apple is said to preview its first AR headset model at the WWDC keynote, signaling to companies such as Meta that it is arriving in their market to stir up some trouble. However, one report states that while the California-based giant will likely capture the premium mixed-reality headset market, it will also help Meta along the way.

Despite being future competitors, Apple's AR headset launch should entice consumers toward Meta's more affordable offerings

At its rumored price of $3,000, Apple's first AR headset will be out of budget for millions of potential customers, and this may be one reason why the company is only estimated to ship around 100,000 units for the entire year, which rounds up to a revenue of just $3 billion. However, despite the head-mounted wearable not being an immediate monetary success, Mark Gurman mentions in his latest 'Power On' newsletter that Apple will take control of the higher-end market.

The Bloomberg reporter also states that Meta may benefit from Apple's first AR headset, as the latter can popularize this product the same way it popularized the wireless earbuds market. Consumers who cannot purchase the absurdly pricey Apple AR headset will likely want to try out the more affordable alternatives from Meta, slowly increasing customer adoption for this product category.

"With headsets, Apple will immediately own the upscale market — headsets that cost more than $2,000 — but Meta will remain dominant in the cheaper segment. Meta may even benefit from Apple helping popularize XR, using that buzz to serve consumers who can't afford a top-of-the-line model."

Unfortunately, despite generating substantial momentum in this space, one analyst believes that Apple's AR headset will take around seven years to contribute to just 10 percent of the company's overall business, meaning that the iPhone will continue to be its 'bread and butter.' Meta's affordable AR headsets will eventually get some competition from Apple in the price-to-performance segment, as a cheaper version is said to launch in 2025, and if we are lucky, we might even get to see a pair of smart glasses during that time.

For now, we will wait for Apple's imminent WWDC 2023 keynote and the AR headset preview, along with its dedicated software announcement. Hopefully, both aspects leave a positive first impression, and we will provide all necessary updates to readers, so stay tuned.

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