Apple's headset business has the potential to become a $25 billion revenue stream, but only if the company expands its product range beyond the Vision Pro. This includes developing more affordable AR glasses, potentially tethered to an iPhone, according to a new report.
Mark Gurman, in his "Power On" newsletter, suggests that Apple needs to find new avenues for revenue growth. While the iPhone remains a significant contributor, it's no longer driving the same level of sales increases. Gurman believes that rather than relying on a single hit product, Apple needs to cultivate multiple successful product categories, including head-mounted wearables.
Beyond the Vision Pro, Apple is reportedly working on a more affordable mixed-reality headset and a pair of smart glasses. The smart glasses could potentially connect to an iPhone to handle some of the processing, offering a more comfortable and potentially less expensive experience.
"To grow, the company can’t just wait for one big new opportunity — it needs several new device categories...But perhaps a broader line of Vision wearable products...could become a $25 billion business.” - Mark Gurman
While some may view an iPhone-tethered experience as cumbersome, Apple may see it as a way to strengthen its ecosystem. Developing a fully standalone pair of smart glasses has proven challenging, as CEO Tim Cook has previously mentioned, due to the difficulty of achieving iPhone-level performance in a low-power wearable device. Apple's vision for a truly standalone pair of smart glasses may still be several years away.
