Apple Inc. AAPL could delay production of its highly-anticipated mixed reality headset due to "complex design," according to a new investor note from Apple analyst Ming-Chi Kuo, 9to5Mac reported Monday.
What Happened: Apple may not begin production of the AR/VR headset until the fourth quarter of 2022 as the tech giant wants to have a solid ecosystem of hardware, software, and services at launch, Kuo reportedly said in the note.
Apple plans to position its mixed reality headset for various applications and not just as a gaming device. Therefore, the challenge of building software, ecosystem and services is significantly higher than those of Apple’s competitors, as per the analyst.
Why It Matters: Apple was earlier expected by Kuo to launch the mixed reality headset in the middle of next year. The analyst had also said he expects the headset to be priced at around $1,000 in the United States.
The headset is expected to compete against Facebook Inc.’s FB Oculus and Sony Group Corp.’s SONY PlayStation VR, among others.
Apple has quietly been working on pushing into the virtual reality and augmented space for years.
The Tim Cook-led company confirmed its acquisition of a VR live-streaming startup called NextVR in May 2020 and followed it up with the acquisition of Spaces three months later.
Price Action: Apple shares closed almost 1.2% higher in Monday’s trading at $146.55.
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