It is evident that most players remain content to fiddle with prototype and beta products, which are still years away from commercial viability. We believe this state of persistent fragmentation provides a potential opening for Apple. Given the relative infancy of AR, Apple does not seem to be behind any of its competitors from a technological perspective: ARKit appears to be just as capable as any other solution within the AR space…

We believe that actual applications for AR will be very limited in the next 1-2 years, as long as the technology remains constricted to smartphone hardware… From an end-user perspective, smartglasses would allow users to take better advantage of AR compared to smartphones…

Smartglasses could potentially generate tens of billions of dollars in annual hardware sales for Apple. Comparing it to Apple’s last blockbuster product launch, the iPad, we believe that smartglasses could have just as wide (if not wider) appeal over time. Assuming a $500 ASP and an annual adoption rate of 2% in Year 1, ramping up to 5% by Year 3, we estimate that Apple smartglasses could generate over ~$25B in annual hardware sales within 3 years of release, with minimal cannibalization of other Apple products.

Sourced through Scoop.it from: www.ped30.com