New report published this weekend by Bloomberg suggests that Apple will only be able to produce one million units of its mixed reality wearables this year.. This means that the device should not be as profitable as other products from the Cupertino company. Even though it hasn’t even been released yet, it has already been called a “failure” compared to other Apple releases.

With an estimated price of $3,000 and an expected shipment of one million devices this year, Apple’s total revenue from the product would be $3 billion, according to Bloomberg’s Mark Gurman. In the “Power On” newsletter Apple is not expected to make much profit from the launch of the AR headset, suggesting that the main goal was to launch the device ahead of the competition in order to gain a significant market position..

“The company believes it can sell about a million units of the headset — likely dubbed the Reality Pro or Reality One — in its first year. At a price of $3,000, that would mean revenue of about $3 billion. The components of the device are very expensive and Apple will still not aim for its typical margins,” said Mark Gurman.

Analyst compares to Apple Watch

Bloomberg’s Mark Gurman called Apple’s AR headset “a failure” despite having an advantage over the competition. The gourmand attributes this labeling to the high price of the device, as well as the immaturity of the market for this type of product. Gurman suggests that Apple’s customer base could grow with a cheaper model in the future.

Although Gurman compares Apple’s AR headset to the Apple Watch, he believes the comparison needs to be cautious. Before Apple launched its first smartwatches, the wearables industry was worth $10 billion, but now, last fiscal year, it’s worth $41.2 billion. The success of the Apple Watch is partly due to the fact that it falls into the Apple home and accessories category.

“In terms of sales, the first version will look like a failure compared to the company’s existing products. It is likely that Apple will become the market leader in mixed reality in a few months, but this is just a sign of how weak the market is. “The current situation,” emphasizes the report submitted by Gurman to Bloomberg.

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Via: WCCF Technology

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