Apple’s Headset Business Can Become A $25 Billion Business, But Only If A Wide Range Of Products, Including Cheaper AR Glasses Tethered To An iPhone Will Launch

The lack of an affordable price and expanded app repository meant that the Apple Vision Pro would never be the ‘home run’ product, with the latest evidence being that the headset’s production is set to end this year. The company has reportedly hit a snag with its low-cost model, and where it was mentioned that the device would launch sometime in 2025, the production timeline has been delayed beyond 2027. Regardless, an update states that Apple can still turn its headset business into a $25 billion one provided a multitude of products can fill this category, including a pair of smart glasses connected to an iPhone.

New estimates show that Apple headset business may never reach the same height as the iPhone, but it might not have been intended to

A new report from Mark Gurman’s ‘Power On’ newsletter talks about Apple needing to find more revenue-growing avenues. The iPhone has cemented its place as the technology giant’s money-making machine, but sadly, it is not contributing to the sales gain that the company requires. Gurman states that to achieve growth, Apple will not require a hit product but multiple categories that will bring in revenue, including head-mounted wearables.

For now, we have the first-generation Apple Vision Pro, but the technology behemoth has more products to expand the family, starting with an affordable version, but as we mentioned above, it has been delayed. Fortunately, the company intends to bring the same mixed-reality experience to a comfortable pair of smart glasses, with Apple considering launching spectacles that will be connected to an iPhone to offset some of the computing.

“Apple still needs to find new sources of growth, of course. The iPhone isn’t going anywhere, but it’s also not fueling the sales gains that it used to. So, what’s the solution? To grow, the company can’t just wait for one big new opportunity — it needs several new device categories on the level of an iPad, Mac or Apple Watch.

That’s easier said than done. During development of the Vision Pro, executives aspired for the device to eventually become an Apple Watch-sized hit — something that now seems unlikely. But perhaps a broader line of Vision wearable products (including things like smart glasses, augmented reality spectacles and iPhone-connected head-worn displays) could become a $25 billion business.”

While some might believe that having a secondary product like an iPhone connected to a pair of smart glasses might make the experience cumbersome, Apple likely believes that including the iPhone in the mix will make the latter an important addition to the ecosystem. Also, the Cupertino firm has tried to develop a standalone pair of smart glasses but has achieved little success.

For one thing, the technology was previously stated by CEO Tim Cook to be too elusive, with the biggest obstacle is running a chip that can deliver iPhone-level performance while consuming one-tenth of the power, something that is impossible to achieve right now. Hopefully, in the coming decade, Apple may realize its vision.