Apple unveils $3,500 AR/VR headset, biggest product launch in nearly a decade (updated)

Updated: Apple (NASDAQ:AAPL) unveiled its ballyhooed mixed-reality headset at its annual Worldwide Developers Conference Monday, marking its biggest entry into a new product area in nearly a decade.

In the Apple-traditional "Just one more thing" moment of the end of the presentation, CEO Tim Cook introduced the Apple Vision Pro.

"This is a day that's been years in the making," Cook said. "One that I've really been looking forward to. I believe that augmented reality is a profound technology. Blending digital content with the real world can unlock experiences like nothing we've ever seen. So today I'm excited to announce an entirely new AR platform with a revolutionary new product."

Similar to Apple's other major product lines, the new device would usher in a new era, Cook said: "Apple Vision Pro will introduce us to spatial computing."

The news marks the most significant new product line for Apple since the Apple Watch first emerged in 2014. It came late in a WWDC presentation that CEO Tim Cook had teased would include a cavalcade of new announcements.

Unlike rival devices like the Meta Quest (META), Apple's device doesn't use dual joystick accessories, but instead relies on hand tracking -- with the user gesturing in midair to control the interface.

Updated: As expected, the new device aims for the super-premium end of the burgeoning market, priced at $3,499 and available early next year at stores and Apple's website. Like many Apple products, it's built from glass, aluminum and carbon fiber. It's meant to blend uses between virtual reality and augmented reality, with an array of sensors and cameras working through a single piece of up-front optical glass acting as a large lens.

A specialized chip, the R1, helps the device's M2 chip process input from 12 cameras, five sensors, and six microphones. As for its heavy power needs, the company says the device gets two hours of use with an externally connected battery (so that the battery weight isn't on the user's head).

Disney (DIS) CEO Bob Iger showed up to add more star power to the release, saying Disney+ (with what looks like extra environmental features and enhancements) would be available on the device on day one.

At the conclusion of the event just after 3 p.m. ET, with the pricing news fully revealed, Apple stock (AAPL) had pulled off an earlier record high to drop 1%. Intel (INTC) had fallen 4.3% after Apple used the event to debut powerful new processors. Unity Software (U) jumped 11.7% after coming up in the presentation, with Unity apps running natively on the device.

In the early going, Apple execs raced through a number of hardware and software releases.

MacBooks: The company rolled out a bigger 15-inch version of its MacBook Air. The company had rolled out a revamped 13-inch version of the lightweight laptop at last year's WWDC, and had planned at that time to introduce a larger version but postponed it.

The 15-inch MacBook Air is based on Apple's own M2 silicon (not the newer M3 chip) and features a liquid Retina display at 15.3 inches; it starts at $1,299 ($1,199 for Education). It's orderable today and available next week, Apple said.

The 13-inch MacBook Air stays in the lineup at $1,099 (down $100) and the 13-inch Air with M1 stays in at $999.

Macs: The company introduced the Mac Studio with the new M2 Ultra chip, a machine targeted at video producers and 3D artists with a graphical processing unit up to 76 cores. The computer is six times faster than the most powerful Intel-based iMac, the company said.

The Mac Pro will come with M2 Ultra and a hefty 192 GB of RAM.

The new chips "join our other processors to give our users the most powerful and capable lineup of pro products that Apple has ever offered," said senior VP of Hardware Engineering John Ternus. "This completes the transition to Apple silicon which has completely transformed the desktop and laptop experience, and we're just getting started."

Operating systems: The company announced iOS 17, which will bring changes to some key user interfaces with iPhones -- notably phone, FaceTime and messages, senior VP of Software Engineering Craig Federighi said.

It's also upgrading AirDrop sharing to include NameDrop, for trading contact information with another iPhone or Apple Watch, and to easily transfer photos and shared music by bringing devices into close proximity.

A new "StandBy" feature turns an idle iPhone into something of a smart display, offering up contextual information like clocks, sports scores in a highly visible interface.

As for iPadOS 17, the newest iteration of its tablet operating system, the company is upgrading information widgets (for more direct action) and the tablet's lock screen.

In the new MacOS Sonoma release, the OS adds new pinnable widgets as well as screensavers similar to Apple TV. It adds gaming power as well as enhanced videoconferencing (along with a number of the updates mentioned for iOS and iPadOS). It also includes an iteration of the company's latest Safari browser.

AirPods: Apple says it has significantly enhanced the earbuds' flexibility in dealing with ambient environmental noise when taking calls, for example.

TVOS: Apple is bringing its FaceTime videoconferencing to Apple TV, allowing callers to tap the biggest screen in their home.

Developing story ...

Comments

[ghrelin]

The iphone was great for samsung, Apple giving the metaverse and AR credibility is a great thing for META. Pepsi wouldn't exist without Coke. The intelligent thing to do is make different products to appeal to different crowds. If Apple and Meta try to do exactly the same thing it probably won't workout that well for either. That being said I'm far more bullish on META than i am on AAPL.

AAPL has to come out with new innovative hardware every 5-8years to stay successful, META releasing it's first piece of hardware could have a massive impact on it's value and future earnings (even if and most likely it's the #2 in this market behind AAPL). Hopefully Zuck doesn't start a petty war, but guaranteed Tim Cook will.

[metoo5]

@ghrelin - " I'm far more bullish on META than i am on AAPL."

It's not a very bullish sign that their HW product line is almost certainly subsidized, and they have used 100% of FCF to pay employees for the last decade.

www.epsilontheory.com/...

[Hudson Investments]

@ghrelin Apple did this with the iPhone whose volume is lower than Android phones, however, they make the most money.

The volume of their AR/VR Vision Pro sales will be low, but they will dominated the space and make the most money.

[metoo5]

@Hudson Investments - That may well happen, but it's not clear that the same dynamic will play out since AR/VR wearables is far more demanding and it's not clear a "good enough" strategy will be good enough here. Google's Android was a defensive play to make sure they wouldn't lose mobile advertising, and they seem to have limited interest since that fear didn't materialize. Moreover, the Android smartphone vendors except for Samsung have very slim margins. I don't know but it seems possible that since Apple excels at miniaturization and custom silicon and ecosystem integration they might in the end have more market share than with smartphones. I don't think it matter much either way however.

[outlook69]

Can't wait for Apple to cease to exist as an overpriced, narcissistic technology provider

[Danoxx]

@outlook69 Is that you, Mr. Zuckerberg?

[metoo5]

@outlook69 - Don't go Unabomber on us.

Wow. Autocorrection capitalized the word. I've never typed it before. Too funny

[Investing For The Future]

@Danoxx Must be.

[Mr Briggens]

My 2014 MacBook Air is no longer supported by a program I use (still works great otherwise) so I went an purchased a new MacBook Air last night.

I asked the sales rep at Best Buy what she thought of the new headset and she just laughed and said "overpriced, don't buy it". Nice to see (at least one of) the sales staff are not buying the hype.

[Investing For The Future]

@Mr Briggens Wow, a sales rep at Best Buy.

[metoo5]

@Mr Briggens - I and many made the easy prediction that it would be perceived a failure initially no matter what. All Apple's products were considered a failure until they weren't. I've no idea why you think most tech types would be proponents of any early Apple product (let alone one not released until next year) right now.

[Mr Briggens]

@Investing For The Future

I knew what I wanted so finding the rep was the hardest part. But she was friendly and helpful.

[nasa_rss]

85" TV OR a Headset... that's an easy one.

[GotsToGetMineFirst]

@nasa_rss Already have like a 100" TV with my long ago paid for projector which was was like a grand back in the day. Doesn't require wearing ski goggles and doesn't make me sick either. Best of all family and even extended family when they visit can enjoy the movie together. 3D porn isn't really an option admittedly though.

[wboz]

Just found out this headset doesn't work with glasses on, so you'll need to buy extra custom Zeiss corrective lenses to add to it if you need it. What kind of abelist ishit is this, Apple? 62 percent of people wear some sort of corrective lenses. It's not rocket science to consider inclusiveness early in the design. That's like making a right handed only iphone.

[metoo5]

@wboz - Um, Apple pours more resources into accessibility than any other. Now to avoid the charge of abelism we've got to equalize costs for everyone or design to lowest common denominator? You've not thought this through.

[shaynefchaim]

@wboz Many that need glasses wear lenses. especially amongst women. If the product ends up being that good I expect those that want it will adjust.

[wboz]

@metoo5 they do and I appreciate it. Then they go make these.

[GameBuzz]

I will make this comment #667 so those who are superstitious can rest easy. ;0)

[tboucher1]

Doesn't sound like many were impressed.

[rdyck]

Is going to really suck when Apple starts displaying uninterruptible ads on these devices.

[GotsToGetMineFirst]

@rdyck Without the discount like Amazon does on the kindle.

[Anonymess]

@rdyck Ya... I see those constantly on my macbook, ipad and iphone, NOT. This is not something Apple does today, no reason to expect they will in the future. You can find ads in various apps... but those are put in by app developers, Apple isn't asking them to do so, no forcing them to do so.

[OldEurope]

Apple is looking for a successor to multitouch. Eye tracking and gestures plus good ole speech commands form Apples take on the interface for spatial/ambient computing.
That is the most significant development that a product in the goggle category enables.
The augmentation aspects need to proof usefulness to replace iPad with traditional screen/multitouch interface.

[metoo5]

@OldEurope - I don't think Apple sees it as a successor to multitouch. It is an addition to multitouch. I think it will be a successful product, but not a replacement. I think touch is the best method for certain things, and vision will be best for other things. Not mutually exclusive. Apple sees this as an addition to the portfolio of products, not a replacement for any current products. The iPad isn't going anywhere. They just introduced Pro apps for it. The only real replacement we've seen was iPod -> iPhone but the iPod was an appliance rather than a true computing product. It was turned into an app. We'll be using pocket computers and iPads for the foreseeable future even if vision is a big success in time, as it probably will be.

[OldEurope]

@metoo5
agree
Never meant exclusivity, rather addition to interface.
Probably poor wording regarding „successor“.

[metoo5]

@OldEurope - Gotcha. It is a successor in terms of complexity and furtherance of use of our human faculties. Sorry not trying to be a word nazi. But many do think of it in terms of a replacement for iPhones and/or iPads, but I don't. It's why silicon is the new oil. You buy a new car and you get rid of an old one since your garage can only hold 1 or 2. But with computers you just keep buying more and expanding the list. We'll have multiple wearable computers, and the pocket computer might not even ever go away. Our bodies are the real estate that is most valuable to us. I've always invested like the demand for computing power is nearly insatiable. I think it nearly is.

[pgtp4]

I have not owned Appl since Jobs passed. The culture, hoolahoop, feel of it continues to repulse me. Appl caters to people who are or think they are the chosen ones
I've always owned msft for their practical, meaningful product line ( other than gaming ugh) that continues to change the world not just the rich.

[Mr Briggens]

@pgtp4

I've agreed with your statement for many years and looked at Apple products as expensive Playschool products for hipsters.

But the MacBook Air 13" is perfect for browsing while under the covers and the mouse pad works flawlessly.

I got this one for $200 when I got laid off in 2018. I've had zero problems it until last night when I found out the main program I use on it is no longer supported and won't launch.

[GotsToGetMineFirst]

@pgtp4 Don't get me wrong no fan of the Apple cult but might not want to check the returns since Jobs died. Actually better than MSFT. Easy to find ethical reasons why not to invest in most companies.

[shaynefchaim]

@pgtp4 even minimum wage workers in America all seem to have Iphones. in the 3rd world countries they don't have Apple or Microsoft products. Apple is not just for the rich anymore.

[asm12345]

Almost have to short AAPL on this.

[Investing For The Future]

@asm12345 Please do.

[Kevin Sloan]

And the choice to downgrade after the unveil … why now? Other than pure manipulation

[Alice21]

A few here are saying this will replace TV. I’m not arguing. It won’t for us because we are old. But if tv is to be replaced, doesn’t that mean 4 devices for a family of 4? How does it replace a high end sound system. Again, I’m just curious. 3D makes me seasick for some reason and I’m retired navy who never got seasick. Does this goggle remedy that. It really does sound wonderful for people much younger than we are.

[Awatt127]

@Alice21 it won’t replace a tv. These products that push towards social isolation have all been declining since the pandemic peak a la peloton..zoom etc. sure I think it could be a good work productivity tool in a decade but I don’t see normal people using them

[metoo5]

@Alice21 - I hear that it is the latency that causes dizziness, and Apple's product does not have perceived latency and supposedly doesn't cause that. I don't think this product replaces any of Apple's current products for the foreseeable future, if not always, though I think it will be successful. People idealize speech and vision but touch still has good and amazing uses for many tasks/apps and probably always will.

[Alice21]

@metoo5 , I think people younger than i are going to love it. For me, the 75” tv with a killer sound system is the holy grail. I would like to experience it just to see . I remember talking my parents into letting me give them a VCR. I finally gave up on teaching them to control the movie with the clicker. I ended up telling them just to put the tv on channel 3, shove the tape in and it will eject itself when the movie rewinds. They loved the movies and used it for years but never picked up the remote. I’ve become my parents.

It is interesting that Apple has overcome the latency effect. That makes sense. I do love my iPad and iPhone. I’ll keep buying Apple dips. The goggles sound great. I’m still hoping they conquer the self driving car thing.

[Manticore07]

Buy a bike instead and get off the couch

[correct way to invest]

VITURE XR GLASSES for 500 better deal

[OldEurope]

@correct way to invest
For what use case exactly?

[correct way to invest]

@OldEurope portable screen to game on Xbox or ps5 anywhere without the console wearing regular glasses and switch if you bring the console.i know it's not close in capabilities but 1080p projected is cool

[OldEurope]

@correct way to invest
That is not the use Apple proposes. So not a comparable product and therefor not a better deal.

[outlook69]

A toy for the rich to further divide and cause more mental health issues with the general public, lovely. Thank you Cooks Crooks.

[OldEurope]

@outlook69
Can you explain how your or the general public‘s mental health are negatively impacted by the super-rich or me playing with a new shiny toy?

[kpmedia]

@OldEurope Social media, video games, and this won't be far away from either.

[Hudson Investments]

Apple wins the AR/VR game.

[Keops]

A future collectors item. Just wait a few years, get it for free in someones dumpster, then forget about it for a few decades. Dont forget the original box.

[Doggywag]

I can see serial killers wearing these.

[Doggywag]

A "cool person" wouldn't be caught dead wearing these goggles. Nobody wants to be laughed at.

[OldEurope]

@Doggywag

Yet the ability/strength to stomach some laughter is at the foundation of coolness.

[All*AAPL]

@Doggywag said:
--
"A "cool person" wouldn't be caught dead wearing these goggles. Nobody wants to be laughed at."
--
**Nobody wants to be laughed at?

But then why did you say, "A "cool person" wouldn't be caught dead wearing these goggles." 😂