In its recent earnings call, Apple’s CEO Tim Cook was asked what his level of interest in virtual reality may be. He answered “In terms of virtual reality, no, I don’t think it’s a niche. I think it can be — it’s really cool and has some interesting applications.” These 25 words got technology writers actively investigating the real interest of Apple in AR / VR technology, as far as they can determine. Coming from the CEO of Apple, a statement like this is much more interesting. While no one will really debate the actual words, everyone is interested in what this means for Apple.
The comment comes just after Apple announced the purchase of Flyby Media, a NY based technology start-up focusing on connecting the physical world with digital content. Flyby developed an app that uses image recognition software found in Google’s project Tango. This transaction may raise eyebrows in other places.
Image recognition is certainly a must for all context-sensitive AR and VR applications and this transaction can be seen as an indication of the AR / VR interest level within Apple. Of course it could also be just a smart investment move to make money in a technology field that is looking desperately for the next big application. Social media as a potential user of such technology platforms is on the mind of many analysts, especially after Facebook bought Oculus.
At the same time, the Financial Times reports on Apple building up its own division for AR/VR. Based on Apple hiring people from component makers and competitors, the FT said that the total head count has reached the hundreds, indicating that this is more than just an exploration of the technology as it’s a big investment, even for Apple. However, it may be better to take this information “with a grain of salt”, as this number includes the employees of earlier company purchases in this field by Apple.
Apple’s VR Vision?
Analyst Comment
This development does not come as a complete surprise. Apple is the most successful consumer electronics company in the world at the moment, with most of the success coming from the introduction of revolutionary devices that fulfill and exceed most of the consumer’s wishes and expectations. If Apple is good at anything, it is in figuring out what the consumer wants and expects. As we know from Google Glass, Google could have used some of this expertise before launching into the AR market.
On the other hand, Apple developing new products does not mean that these products will ever see the light of day. As a point, I want to remind everyone of the Apple TV set development that was never released to the public, nor officially acknowledged by Apple. Apple develops products and decides very late what goes to market and what does not. Based on Apple’s market position it is almost a given that they have to explore the AR / VR space. Once they say that they are releasing a product however, all hell may break loose in this market. Until then we have to deal with important news like “Apple visits Stanford University VR Lab” as it proves that Apple is working on AR/VR technology! NH
