Apple Faces Its Biggest Risk in History – Selling a $3,499 Price Tag on Par with High-End Laptops

Apple to Release a $3,499 Glass – Highly Anticipated Mixed Reality Device. This is also a test product to see if customers are truly willing to invest a significant amount in the technology that the company considers the future of computing

The iPhone manufacturer has unveiled the new Vision Pro device at the Worldwide Developers Conference on Monday. It is known that it took over 7 years to develop this device. Introduced with the iconic Steve Jobs phrase “one more thing,” this product marks Apple’s entry into a new field for the first time since they started selling smartwatches in 2015. Vision Pro could also be one of the riskiest launches in the company’s history.

In a lengthy presentation, Apple described numerous features of the device and highlighted planned content, including interactive games and videos from Walt Disney. Similar to a high-tech ski goggle design, this device will have its own operating system called visionOS and an App Store. The device is expected to be delivered to customers in the early next year in the US, followed by other regions.

Vision Pro is the latest device that Apple hopes will be the next breakthrough product to sustain its explosive sales growth. They aim to redefine an industry that is still relatively young, similar to what they did with Mac, iPod, iPhone, and iPad. The difference this time is that Apple is launching it at a high price and diving into a market that has not yet made significant waves among consumers.

On a broader scale, they aim to change the way people interact with the world. Apple is also seeking a new platform to go beyond the iPhone and iPad, and this could be the path to achieving that. This device will provide users with an immersive experience with a high-resolution display, making it ideal for watching videos or overlaying applications onto the wearer’s field of view, allowing messages and notifications to appear without overwhelming the user.

However, there are still divergent opinions among investors. The company’s stock rose to near-record levels on Monday but declined after the announcement of Vision Pro.

It is undeniable that Apple’s marketing prowess is unparalleled, as evidenced by their ability to convince consumers to spend increasingly more on smartphones. However, this product could be one of the company’s biggest challenges. A competitor’s mixed reality headset is priced at just a few hundred dollars, whereas the $3,499 price tag places this product in the realm of a high-end laptop rather than an everyday wearable device.

The company describes the new interface as “spatial computing.” One feature called Eyesight displays the images from your eyes outside the earbuds when people are nearby.

The product will also display people within your field of view while you’re wearing the device, an effort to keep users more engaged with the outside world.

The so-called “Digital Crown,” a term borrowed from the Apple Watch, switches between augmented reality and virtual reality. Apple states that they conducted research with thousands of individuals to ensure the product is comfortable and has filed over 5,000 patents. The device has two main chips. It features an M2 processor from the Mac for handling core computing tasks, and a second chip, R1, works with dedicated sensors to enable mixed reality capabilities.

Apple’s launch sets up a clash with Meta Platforms, the company currently owning an 81% share of the VR headset market, according to Counterpoint Research. Apple hopes to sell around 900,000 Vision Pro units in the first year, and with this price range, it could potentially gain a dominant market share. However, those figures will only be a small part compared to what Apple’s other devices generate.

Disney CEO Bob Iger also participated in the presentation, stating that the Disney+ streaming service will be available on the device at launch.

“We believe that Apple Vision Pro is a revolutionary platform that can turn our vision into reality,” Iger said .

Other content providers, such as Netflix, and application developers like Zoom Video Communications Inc., will also have the ability to create their own apps for the device.

Apple also cited Unity Software Inc. as a company they are collaborating with, which led to a 17% increase in Unity’s stock on Monday. From a technological standpoint, Vision Pro is one of the most advanced consumer devices to date. The headset features multiple cameras, dual microLED 4K displays, and the ability to capture 3D photos and videos. It utilizes an external battery pack with a two-hour usage time, or it can be plugged into the wall for all-day use.

The launch of Vision Pro serves as the “grand finale” for a day of software and hardware announcements at WWDC, with Apple introducing new Macs and software for its core devices.

Prior to this, Bloomberg reported that Apple has been working on a cheaper version of Vision Pro as well as a potentially even higher-end model. “This is just the beginning,” said Tim Cook.

According to Bloomberg