Mark Gurman, in this weeks’s Power On newsletter, stated that last week, Apple held an important assembly of its highest ranking executives at the Steve Jobs Theater in Cupertino. The gathering, known as the Top 100, was to witness a demonstration of the firm’s most important new product in years: its mixed-reality headset. This wasn’t the first time the group had seen it, as the Technology Development Group has been discreetly displaying the product to top decision makers annually since 2018. However, this presentation was different, taking place in the company’s largest showcase, which suggested that a public unveiling is close. Ahead of their annual offsite at a resort in Carmel Valley, the executives were given a polished and exciting demonstration of the device.
Although the mixed-reality sector is still immature, many of the execs are aware of the risks Apple is taking. Unlike their previous attempts to break into new markets, this product will require explanation as to why customers should purchase it. It is also projected to be expensive at around $3,000, needs an external battery changed every couple of hours, and has no clear killer app. The company is hoping for the same success they had with the Apple Watch, which took off with the addition of better third-party app capabilities, a simplified system, and a faster processor. The firm is launching a version of the headset that will cost half as much and a successor with improved performance two years after the initial launch, with the hopes of selling 1 million units in the first year and generating $3 billion in revenue. Time will tell if the product will be a hit or a miss.