The forthcoming product will become Apple's first immersive headset, and when it launches, will join Apple's wearable device segment — the tech giant's fastest-growing business. Apple is also reportedly developing lightweight AR glasses that could launch as soon as 2023.
AR hardware has long been rumored for Apple's next big product, but this is the first meaningful signal that the company is interested in VR hardware too. Should Apple also tap into the VR market, the move would mesh well with its ambition to become a major player in the media space. For example, Apple could integrate VR into its subscription media services, like Apple Music, where company could take live concerts and recreate it in a simulated world.
The news points to Apple's ambitions to place XR functionality at the center of the evolution of its hardware. Apple says it's developing a new 3D sensor system, which will be the nucleus in the company's XR product roadmap: The 3D sensor system will be leveraged across Apple's AR and VR headsets and glasses and will first arrive on a new iPad Pro that's slated for release in 1H 2020, followed by Apple's 2020 iPhone lineup.
As Apple edges in on the XR space, Facebook should pay close attention. While the company is yet to publicly announce a product, it's expected that the new Apple VR and AR headset will resemble Facebook's popular Apple's ability to power its headset with its own system on a chip, combined with its integration with Apple's device ecosystem, could provide a competitive edge over Facebook, which uses Qualcomm chips.