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Despite Challenges, AR Device Manufacturers Push Forward

The only people who actually own them are influencers or Google cofounders
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Qualcomm

· less than 3 min read

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2019 will go down as the year AR devices became big news, but the only people who actually owned them were influencers or Google cofounders. IDC expects over 500,000 AR headset sales this year, vs. projected sales of 7 million VR headsets.

But companies aren’t quitting

In September, we learned Facebook is developing AR smart glasses with Ray Bans’s parent company, though the glasses won’t be ready to ship until the mid-2020s.

In November, Microsoft launched HoloLens 2, its expensive enterprise AR headset. Snap launched Spectacles 3, an iterative step toward consumer AR specs. And Apple wants to ship an AR headset in 2022 and glasses in 2023, The Information reported.

Just last week...

...The Information’s latest AR scoop: Magic Leap had a $40+ million/month burn rate in 2018. As the Florida-based AR startup raises a Series E and reshuffles its c-suite, it’s facing more difficulties:

  • When its first headset dropped in August 2018, Magic Leap wanted to sell 100,000 units in a year. Six months in, it had sold just ~6,000 headsets.
  • Its next-gen device is reportedly “years away from launch.”

As for the OG: Google announced it’s pulling support for the Explorer Edition of Glass, the AR glasses it released in 2012.

Light at the end of the tunnel?

Last week, California chipmaker Qualcomm announced its XR2, the world’s first 5G AR/VR chipset. It features an 11x boost in AI processing, 6x the video resolution support, and other mixed reality features.

  • Niantic, the company behind Pokémon Go, is developing an AR headset with the chipset.
  • A Qualcomm exec said five other (unnamed) manufacturers are building on the XR2.

Big picture: Despite the crowded field, nobody’s built a breakout AR wearable. Bespoke chipsets and 5G will give manufacturers a boost, but hardware is hard: They still need to refine displays, batteries, and form factors. If they nail the design, however, manufacturers’ next challenge—drumming up consumer demand—will be easier.

Keep up with the innovative tech transforming business

Tech Brew keeps business leaders up-to-date on the latest innovations, automation advances, policy shifts, and more, so they can make informed decisions about tech.