Reports indicate that Apple Inc. (NASDAQ:AAPL) is betting on Augmented Reality to give the company its next big hit. Previously, the chief executive officer of Apple, Tim Cook, has shown his preference of Augmented Reality compared to Virtual Reality and is betting the future of the company on the former.
According to a Bloomberg report, the Cupertino, California-based tech titan has built a software and a hardware team to realize its AR ambitions. The team is said to comprise of both company veterans as well as outsiders and is headed by a former executive of Dolby Laboratories, Inc. (NYSE:DLB). Some of the outsiders include engineers who have previously worked on other similar projects at Microsoft Corporation (NASDAQ:MSFT), Facebook Inc (NASDAQ:FB) and major Hollywood studios.
Acqui-hires and acquisitions
Besides hiring talent, Apple has also made acquisitions and some of the firms it has bought out are involved in the development of virtual reality and 3D gaming software and augmented reality hardware.
Some of the augmented reality products that Apple is currently working on include digital glasses that can be wirelessly connected to a smart device such as the iPhone and beam such content as maps, movies etc to the user. These glasses are not likely to be launched any time soon but augmented reality features are expected to be available in the next version of the iPhone.
AR global market
While not currently as big as the smartphone market, the worldwide market for augmented reality products will grow by 80% in the next seven years and then market then will be worth approximately $165 billion. This is according to forecasts based on a study done by Global Market Insights.
According to analysts, for Apple is to succeed in augmented reality it needs to develop products that are better than what is currently being offered in the market. For instance, consumers have complained that the AR glasses that are currently available have a lot of weaknesses in them including bulkiness, flimsiness or just being under-powered. It’s not a tall order for Apple, however, as it has shown expertise for making products that are light, thin and easy to use.
In Monday’s trading session, shares of Apple Inc rose by 1.05% to close the day at $141.46 a share.
