Apple Inc (NASDAQ:AAPL) could have a key advantage when it comes to augmented and virtual reality headsets, according to Ming-Chi Kuo.

What Happened: The well-known Apple watcher said everyone knows what a VR and AR experience may look like, but for most people, it is difficult to imagine what smooth switching between these two experiences can provide. 

“​​It may be one of key selling points of Apple's headset,” wrote Kuo in a Tweet on Sunday. 

Kuo said in the same thread that a “complete mixed reality” hardware is not only the one that supports both AR and VR but also one that supports smooth switching between them.

The Taiwan-based analyst said it's the reason he uses the term “AR/MR” to describe the Tim Cook-led company’s headset, which is expected to hit store shelves in the second quarter of 2023.
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Why It Matters: Apple did not showcase an AR/VR headset at the recently concluded Worldwide Developers Conference last week.

Kuo said recently that the shipping of the headset had been delayed from the first quarter of 2023 due to Shanghai COVID-19 lockdowns.

Loup Funds Managing Partner Gene Munster said there’s a likelihood of the headset being previewed in 2023. 

Apple’s rival, Facebook parent Meta Platforms Inc (NASDAQ:META), is taking an approach different from the Cupertino, California-based tech giant.

Goldman analyst Rod Hall noted recently that while Apple is aiming to extend its already powerful platform through the metaverse, Meta is trying to build a user base through attractive hardware pricing and compelling experiences.

Price Action: On Friday, Apple shares closed 3.9% lower at $137.13 in the regular session and rose 0.2% in the after-hours trading.

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