Apple likely still not confident about its mixed reality headset, may not announce it at WWDC 2023

By Abhik SenguptaApple’s mixed-reality headset has been rumoured to be in the works for a long time, and a new report suggested that the company may finally unveil the device at the upcoming WWDC June 5 event. Now, notable Apple analyst Ming-Chi Kuo, who has reliably leaked Apple-related details and developments in the past, claims the mixed-reality headset may be unveiled in Q3 2023 since the company is “not being very optimistic regarding the market feedback to the AR/MR headset.” Even the New York Times reported earlier this month that Apple employees were unconvinced by the product due to its price and timing. Apple’s mixed-reality headset will reportedly cost approximately $3,000 (roughly Rs 2 lakh).

Apple’s mixed-reality headset is said to be the stepping stone for the company’s larger plan to replace iPhones. When Apple launched the iPhone in 2007, it quickly made the company’s music player, iPod, obsolete. The mixed-reality headset is expected to be the first step towards Apple’s highly-anticipated AR glasses. A mixed-reality headset combines the capabilities of virtual reality (VR) and augmented reality (AR), which resembles ski goggles. The product can show information on the glasses and essentially aims to replace smartphones.

In the tweet, Kuo writes, “Because Apple isn’t very optimistic about the AR/MR headset announcement recreating the astounding ‘iPhone moment,’ the mass production schedule for assembly has been pushed back by another 1-2 months to mid-to-late 3Q23. The delay also adds uncertainty to whether the new device will appear at WWDC 2023, as the market widely expects. Furthermore, due to the delay in mass production for assembly, the shipment forecast this year is only 200,000 to 300,000 units, lower than the market consensus of 500,000 units or more.”

Kuo’s tweet about shipment also suggests concerns related to production and Apple’s poor anticipation of the sale. Apple mixed-reality headset will reportedly include a custom SoC (system-over-chip) similar to M1/M2 on the newest Macs, an A16 Bionic chipset on iPhone 14 Pros, and an S7 chip on Apple smartwatches. The advanced goggles will include custom glasses for customers with a prescription. Additionally, the company may use a carbon fibre body to ensure a lightweight design.

Therefore, the company will likely face setbacks due to the headset’s high price, especially amid poor macroeconomic conditions. The market reception for AR/VR headsets has been lukewarm. Some VR headset manufacturers, like Microsoft’s HoloLens division, have also laid off people to cut expenses.

However, it is also possible that Apple is pushing the presentation to September to coincide with the launch of new iPhones. Unveiling the mixed-reality headset alongside iPhones could send a broader message to the masses that the future (or replacement) of smartphones has arrived.