Apple Acquires AR Glasses Technology
Source: Gadgets Arena

Apple Acquires AR Glasses Technology

  • Reuters is reporting Apple has acquired Akonia Holographics, maker of transparent displays for AR glasses.
  • Akonia Holographics complements Apple’s 2017 acquisition of SensoMotoric and its 2013 acquisition of PrimeSense.
  • Apple is committed to AR, both on the iPhone today and moving to a wearable in the future.
  • Terms of the deal were not announced, but we estimate Apple paid somewhere between $50M and $100M.
  • Our best guess is that Apple will release AR glasses in FY21.

Apple Glasses In FY21

Our best guess is that Apple Glasses, an AR-focused wearable, will be released mid FY21. Previously we had been expecting AR glasses in mid FY20; however, we believe it’s prudent to take a more conservative view on timing. Apple is putting significant resources into AR, including ARKit and AR acquisitions like Akonia, SensoMotoric, and PrimeSense. We believe Apple sees the AR future as a combination of the iPhone and some form of a wearable. With an average selling price for Apple Glasses around $1,300, we expect initial demand to be limited at just over 3m units compared to 242m iPhones that year. This implies that Apple Glasses will represent 2% of sales in FY20 increasing to 10% ($30B) in FY22 when we expect the ASP to be about ~$1,000. This growth curve is modeled after the iPad initial growth. Longer-term, we expect a different growth curve for Apple Glasses vs. the iPad. We believe the product will continue to increase as a percentage of sales for the next ten years.

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Apple, Augmented Reality