Article updated on September Apr 14, 2023
As Apple estimates that The first release of XR headsets will be 1 1 million units with exceeding 20 billion revenue according
March 27, Bloombergs Mark Gurman said in the latest Power On newsletter that Apples first AR/VR headset will cost $3,000 (currently about $20,610) and is expected to ship 1 million units in 2023. Total revenue is around $3 billion (currently
March 27, Bloomberg's Mark Gurman said in the latest "Power On" newsletter that Apple's first AR/VR headset will cost $3,000 (currently about $20,610) and is expected to ship 1 million units in 2023. Total revenue is around $3 billion (currently about RMB 20.61 billion).
 
Gurman said in the article that Apple's first AR/VR headset was not launched for profit, but to consolidate the company's market position and establish a solid foothold in the AR/VR market.
The article reads in part:
 
Apple predicts that the headset will sell 1 million units in its first year and may be called Reality Pro or Reality One after its launch.
 
At a price of $3,000, that would mean $3 billion in revenue. The various components of Apple's headset are very expensive, with little to no initial profit, and Apple does not need to pursue traditional profit margins in this emerging market just yet.
However, Gurman still labeled Apple's first headset as "dud" (no value), arguing that this first model is expensive and the current AR/VR market is not mature enough to have many consumers accept such a product.
 
Apple's second model is also said to be cheaper, so perhaps the company's customer base will increase.
 
"In terms of sales, the first version will seem worthless compared to the company's existing offerings. It could still potentially make Apple the market leader in mixed reality for a few months, but that's just a sign of the current market weakness."
 
Gurman also compared the AR headset to the Apple Watch, but he found it difficult to justify the comparison. Before Apple released its first smartwatch, the wearables industry was $10 billion, and now, in its latest fiscal year, it is $41.2 billion. one reason for the Apple Watch's success is its inclusion in the company's home and accessories category, where other products include AirPods, Apple TV models, watch bands and more.
 
As a standalone product, the AR headset is expected to earn $3 billion in revenue by 2023, which isn't a bad start, but the gap is sky-high compared to other Apple-branded devices. However, a second generation product could change market acceptance, especially given Apple's impressive software synergies with other products.
 
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