Since 2018, Apple has organized an annual presentation of its mixed reality headset for its “Top 100” employees and managers, reveals Mark Gurman in his Sunday newsletter. For the manufacturer, it’s a way of maintaining enthusiasm for this new product for a handpicked audience that should be kept in its workforce.
Images: Foster + Partners
One such presentation, dubbed “Fight Club Demos” (the first rule of “Fight Club Demo” is we don’t talk about it), was reportedly held at the Steve Jobs Theater in Apple Park last week. And unlike previous years, the lucky ones appeared entitled to a “sophisticated, lush and exciting” demonstration similar to what might happen in public during WWDC.
Five years ago, when Jony Ive was at the helm of Apple’s design studio, the annual Top 100 presentation captivated audiences. As described by the New York Times, the staff present saw video of a man in a London taxi wearing an augmented reality device. He calls his wife in San Francisco and asks her if she wants to come to London. No need to fly for 15 hours: thanks to this device, the couple can travel together virtually.
Although the video would have had its small effect, the initial enthusiasm seems to have turned to skepticism among some Apple employees. Three points of contention would arise internally: the expected price of the device, around $3,000; Doubts about the usefulness of the machine; and concerns about the current market.
A solution in search of a problem
For this last point, it is true that the situation in the virtual and augmented reality market does not really speak for a newcomer. Unlike iPod, iPhone or Apple Watch launched in promising and growing markets, Apple will enter a sector that is collapsing: several attempts have failed (Google Glass, Magic Leap), others are still at the stage of untapped potential (HoloLens, Quest 2, Quest Pro). According to the NPD, sales in this market fell by 12% last year.
Concept: Marcus Kane.
Still, one could argue that the tablet segment wasn’t at its best when the iPad was launched either. And that AirPods were also a bet before truly wireless headphones weren’t widely available. However, at this $3,000 price point, there’s no doubt that the general public is left out. Rumors suggest Apple aims to sell 1 million units in the first 12 months, an estimate Counterpoint is halving.
Don’t say metaverse, say “copresence”
Employees would wonder if the mixed reality headset wasn’t a solution to a problem. Apple would top the package on features like video calls and the ability to spend time together in a virtual world. This is reminiscent of the famous metaverse of meta, a word banned by Apple executives.
Tim Cook obviously doesn’t want an Apple Metaverse
According to the NYT, Apple has developed a “signature” application called “Copresence” for this experience of sharing a virtual or real space with other people. The manufacturer would also target the device at artists, designers and engineers. The hand motion detection capabilities would be accurate enough to edit and edit virtual reality movies… Finally, there would also be video content designed specifically for the headset.
Hollywood content for Apple’s mixed reality headset?
Not enough to convince several employees who would have left the project because of their doubts. Others have been canceled due to a lack of progress on aspects of the headset, including Siri. This is reminiscent of leaks heard a few weeks ago regarding the design studio’s concerns:
Tim Cook wants his mixed reality headset against the advice of Apple’s design studio
This first headset probably won’t be as sophisticated as other Apple products. Gurman reiterates that the device would need to charge or replace an external battery fairly regularly, every few hours. Testers would also find the device uncomfortable. But it would be a first step towards more advanced and cheaper models (a future model would cost half as much).
Gurman compares this first mixed reality headset to the Apple Watch. When the connected watch came out, Apple didn’t know who this product was for or what features it was actually going to use. We’d have to wait for the Series 3 to get a clearer idea of the device’s interest, which is health and exercise monitoring. Apple has enough pockets to get a product for quite a while and find its usefulness and market for it.