Neil Cybart 4/13/23 Neil Cybart 4/13/23

Apple’s Reality (Headset) Plans (Above Avalon Report)

An examination of Apple’s upcoming entry into AR/VR headsets.

Written by Neil Cybart – April 12th, 2023

In the coming months, Apple is expected to unveil its next wearables chapter with an AR/VR headset. Having already launched wearable devices designed for the wrist (Apple Watch) and ears (AirPods), Apple will soon expand its focus to the eyes (Apple Reality). This report serves as a primer for Apple’s play for the “eyes” - a headset delivering AR/VR experiences.

Note: This report references terms including AR, VR, MR, eye wearables, and Apple Reality. Here is a short explanation of the key differences:

AR (augmented reality): Overlays digital objects/context on top of one’s visual and auditory surroundings.
VR (virtual reality): Offers a digital alternative to one’s visual and auditory surroundings.
MR (mixed reality): A combination of AR/VR, and the goal is to enhance the wearer’s presence.
Face / eye wearables: Devices that include headsets/visors/goggles/glasses.
Apple Reality: The name Apple may give to its MR headset.

Background

The discussion surrounding AR and VR has been noisy and unnecessarily complicated because four devices have been talked about in the press seemingly interchangeably:

Smart Glasses. Lightweight and thin glasses that display small snippets of text, information, and symbols in the wearer’s peripheral vision. This device is, in theory, closest in utilization to that of Apple Watch.
AR Glasses. Lightweight and thin glasses that enhance one's surroundings by adding a contextual layer on top of reality. This device is a more enhanced and capable version of smart glasses.
VR Headsets. A historically bulky contraption worn on the face that removes the wearer from their surroundings. Meta Quest is an example of a VR headset.
MR (AR/VR) Headsets. A historically bulky contraption worn on the face combining VR and AR. Microsoft HoloLens is an example of a mixed reality headset, but some will say the device is closer to a bulky AR headset.

Apple is believed to be working on two distinct products:

MR headset “Apple Reality” (to be unveiled soon).
Pair of AR glasses (to be unveiled in a few years when the technology is ready).

As a sign of how ambitious Apple’s goals are in the AR/VR space, the company

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Neil Cybart 6/3/22 Neil Cybart 6/3/22

The iPhone Mini (Above Avalon Report)

An analysis of Apple’s iPhone mini strategy including the model’s lukewarm reception with consumers and difficult time competing against the iPhone SE.

Written by Neil Cybart

The iPhone business is booming. Unit sales are estimated to be at record highs (~270 million units per year) while average selling prices remain at healthy levels ($750+). No Android alternative comes close to matching the iPhone’s success. A major contributor to the iPhone’s success over the years, both in terms of sales and installed base growth, has been Apple’s intelligent approach at diversifying the iPhone line based on feature set and price. Selling a range of iPhone models, including the iPhone mini, has played a key role in Apple reaching a larger customer base.

History

Apple’s iPhone model expansion strategy started relatively straightforward and early on.