A rather speculative KGI note suggests that Apple’s focus on augmented reality (AR) instead of virtual reality (VR) will give the company a 3-5 year lead on the rest of the industry when it launches its first products. The report also suggests that Apple could use augmented reality as part of an autonomous driving system.
All of Apple’s past successes were related to human-machine interfaces, such as mouse for Mac, click wheel for iPod, and multi-touch for iPhone and iPad. Assuming Apple successfully develops AR, we predict the firm will enjoy the following competitive advantages: (1) redefining existing key products and leading competitors by three to five years. For instance, this could happen for iPhone, iPad and Mac; (2) eliminating obstacles of Apple Watch and Apple TV by offering an innovative user experience; and (3) entering new business fields, such as autonomous driving system.
KGI’s Ming-Chi Kuo doesn’t, though, expect Apple to launch its first AR product any time soon …
Filed under: Apple