Apple Inc (NASDAQ:AAPL) is reportedly delaying the launch of its mixed reality headset until the end of 2022 or later. The delay has to do with development challenges related to overheating, cameras and software.
Delay Makes Sense: Apple’s decision to delay the product makes sense, given the AR/VR headset is a complex product with complex development cycles, supply chain and development technology, Loup Funds analyst Andrew Murphy said in a discussion on Loup TV.
A potential launch of the product around Apple’s Worldwide Developers Conference 2023 would work well for Apple, say Loup Funds analysts. This will help the developer community get behind the product and make it ready from a software perspective as well as apps and features, Loup Funds’ Managing Partner Gene Munster said.
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The firm’s analyst Doug Clinton, who predicted the delay, said the decision to hold off on releasing the headset doesn’t matter to investors. He says the headset is coming, and it is going to take a long time for the device to ramp up and become meaningful relative to the current product base.
So, for Apple, it is still all about the iPhone and Services, and it will take a while before anything related to this headset really matters from a financial standpoint, Clinton said.
Push Back To Multiple Expansion: Munster opined that the delay doesn’t change the trajectory of Apple’s opportunity in the metaverse, but it does create a headwind in terms of multiple expansion opportunities.
“Apple will eventually release a product that will build confidence with investors that Apple has a winning approach to AR and the metaverse,” the analysts said.
Photo: Courtesy of Nan Palmero on Flickr