US Media: Apple Strongly Promotes Hybrid Reality Helmets to Break Its Golden Rule

NetEase Technology reported on May 15th that according to insiders, Apple will launch what may be the most experimental and disruptive product in the company's history in the coming weeks - the Mixed Reality helmet. The appearance of this device is similar to ski goggles and comes with an independent battery pack

NetEase Technology reported on May 15th that according to insiders, Apple will launch what may be the most experimental and disruptive product in the company's history in the coming weeks - the Mixed Reality helmet. The appearance of this device is similar to ski goggles and comes with an independent battery pack.

Apple's hybrid reality project has broken many of the company's traditions and rules regarding the launch of new products, which have become the gold standard in the consumer technology industry. Unlike other Apple products, this new device was still in the experimental stage when it first appeared. Apple expects the popularity of hybrid reality helmets to be slower compared to the AppleWatch or iPhone. After seven years of development before being launched on the market, it will be one of the most complex consumer products that any company has ever sold.

Apple Helmets will integrate augmented reality (AR) and virtual reality (VR) technologies into the same device, known in the industry as hybrid reality. According to insiders, users of this device, such as game players, will be able to experience the virtual world through the screen inside the device, and due to the external camera, they can also see the real world around them at the same time.

Apple engineers and executives have spent several months showcasing a demo version of this device for the upcoming Apple Annual Software Conference in June. But people familiar with the supply chain say that it is expected that most users will not be able to receive the goods until this autumn at the earliest. Insiders say that given the challenges of integrating this helmet with new software, product production, and broader markets, some Apple employees and suppliers question whether the launch of this device may be delayed. Apple still has the possibility of changing its schedule.

Despite facing many known challenges, Apple is still tentatively pushing hybrid reality helmets to the market, which is in stark contrast to the company's usual practice. Previously, Apple tended to enter the fully mature product field.

For many consumers, the expected selling price of an Apple helmet of up to $3000 exceeds their affordability. At the same time, the company itself has also anticipated encountering production problems. This helmet is equipped with an independent battery, which will be placed in the bag at the user's waist. This complex design also goes against Apple's belief in fashion and minimalism.

But technology industry executives and analysts say that Apple is unwilling to wait longer because creating an ideal version of a hybrid reality helmet requires too much time. In addition, Apple has invested a significant amount of funds and resources to develop this helmet, while competitors have begun to dominate the market.

Apple released the AppleWatch in 2014, and the hybrid reality helmet will be the first new flagship product released by Apple in 10 years. Tim Cook, the CEO of the company, believes that there are many risks involved as this device attempts to dominate the virtual world (i.e. metaverse) that people use for work or leisure, which has not yet been widely popularized or understood.

Many investors and potential future partners are increasingly questioning whether consumers are willing to spend money and time in the metaverse. They pointed out that some early adopters were disappointed with the performance of this technology.

Facebook's parent company Meta has always been striving to maintain user engagement and maintain sales of its latest virtual reality helmets. Disney has closed its department for developing strategies for the metaverse. Microsoft recently closed the social virtual reality platform it acquired in 2017 and reduced its helmet development team for US military projects.

Ron Abovitz, founder and former CEO of augmented reality startup MagicLeap, said, "Apple is definitely at the top of many companies trying to climb this mountain. If you are a company worth trillions of dollars, you have the qualification to continue waiting." In recent years, the valuation of this startup has significantly declined.

In Apple's history, the speed with which consumers have accepted most of its products has shocked skeptics. Before the emergence of the iPod, the market for digital music players was very small. Before the advent of the iPhone, the physical keyboard of smartphones was still cumbersome. Before the AppleWatch, wearable devices were just emerging products with limited appeal to people outside the technology industry. In these categories, Apple's entry has greatly expanded the market size.

Many industry insiders expect that Apple helmets will help boost the entire virtual reality product market. Some people who have tried Apple's hybrid reality devices say that their features far surpass their competitors, with higher performance and immersion. Jitesh Ubrani, research manager of IDC, a market research organization, said: "For mass market users, virtual reality still lacks Killer application other than games." IPods have music functions, iPhones have digital cameras, which can be used as mobile phones, and also provide web browsers.

In addition to games, analysts, engineers, and technology executives have also come up with various ways to use Apple's hybrid reality helmet, such as participating in virtual fitness or holding virtual meetings with colleagues from around the world. Some people believe that this is a way to improve educational levels by making certain training more experiential. In the future, it may even be used to assist surgeons in performing surgeries.

Many industry insiders believe that there may still be a long way to go to fully unleash the potential of this technology. In the end, this device looks like regular glasses, but it can completely immerse people in the digital world. Industry insiders believe that developing the technology needed to make this product a reality may take about a decade, including computing hardware that is small enough, energy-efficient enough, and can fit into glasses.

According to insiders, due to production delays, it is expected that Apple helmets will not be mass-produced until September. Renowned Apple analyst Guo Mingxuan predicts that the shipment volume of this helmet will be between 200000 and 300000 units in 2023. Compared to the first year production of the first generation products of the iPhone and AppleWatch, this number is almost negligible.

The expected price of the Apple helmet is about $3000, which is three times that of the Meta's most expensive virtual reality helmet, QuestPro. Even so, insiders say that this also means that Apple's hardware profit margin is still very low.

Insiders say that Apple has yet to make significant concessions in design, such as the external battery pack of the device being placed on the user's waist. In addition, this novel device may also completely wrap the user's eyes like goggles, making it impossible for them to directly view the surrounding environment like wearing regular glasses.

Some former employees stated that Apple's early idea was to wirelessly connect the helmet to the base station to reduce the heavy computational burden required. According to insiders, Jony Ive, then Chief Design Officer, boycotted the product design and encouraged the team to develop independently usable helmets. Ivy left Apple in 2019 and served as an external consultant until his departure last year.

According to insiders, in 2019, Kim Vorrath, a long-time Apple software manager, was hired to help the team shift its focus to launching a hybrid reality helmet. After Wallas joins, the helmet team will work more in accordance with Apple's product development standards and schedule. Since then, Rockwell's team has been operating in a tense and high-pressure mode with the aim of launching a stylish and practical device.

Resigned employees and other insiders said that in the past few years, Rockwell's team has planned to release this helmet multiple times, but due to the need to coordinate the normal operation of software and hardware, it has caused delays.

Michael Gartenberg, former Senior Director of Global Product Marketing at Apple who resigned in 2016, said, "As an Apple product, it doesn't mean anything to me." He said he believes that Cook prefers selling products that appeal to the mass market, while this helmet may only attract enthusiasts.

Supporting the developer ecosystem will be the key to the success or failure of this helmet, as users will need to download the application and immerse themselves in it. People familiar with the matter said that Apple employees are trying to develop a "Killer application" for this device, and are committed to developing products similar to FaceTime, as well as how to transplant their mobile applications to this device.

By releasing the hybrid reality helmet at the developer conference held in June, Apple will send a signal that it hopes this event will stimulate developers' interest in developing hybrid reality helmet content. People familiar with the conference schedule said that many of the meetings during this period will revolve around developing software for the new helmet.

It is said that Apple will try some of the above features in its first hybrid reality helmet and is eager to see developers develop corresponding programs to take advantage of these features. One of the criteria for measuring success is whether Apple can allow us to do things we have never done before, such as using this device outdoors.

Gene Munster, an analyst who has long studied Apple and managing partner at Deepwater Asset Management, believes that Apple has a huge user base of over 2 billion active devices, which is an important consideration for any new product launched by the company.

Apple basically has the ability to create a completely new market, "he said, as the company can integrate new products into its booming field. This mode is also applicable to AirPods, AppleWatch, and even HomePods. The hybrid reality helmet may integrate with FaceTime and other Apple services, and may also serve as an external display connected to the Mac.

As for the high pricing of this helmet, Munster said, "In a few years, these helmets will no longer be priced at $3000, but closer to $700. By then, they will become mainstream