AAPL & FB Involved with Virtual Reality Market
The AR/VR market is predicted to keep growing and display strong gains in the coming years, and AAPL and FB are gunning for it.
Successful stock trading and investing are all about identifying opportunities and potential goldmines. There’s one right here, and tech firms are working towards monopolizing that segment.
AR and VR Market Set to Grow
According to research firm IDC, the augmented reality (AR) and virtual reality (VR) market is expected to grow significantly in the coming years. And it’s something tech stocks such as Facebook (FB) and Apple (AAPL) are betting on. While Apple feels that AR must be directly integrated into the operating system of a mobile device, Facebook focuses on having an AR platform inbuilt in its core app. In any case, both companies are counting on the growth of AR and are reported to be developing AR headsets that could spark new competition in this field.
VR Might Lead the Way Initially
IDC predicts that it will be virtual reality that initially leads the way while augmented reality will have greater opportunities in the long term. As the business and consumer markets begin embracing the technologies, VR and AR are expected to show strong gains all through 2021. The VR market is expected to touch nearly 67.1 million headsets in 2021, while the AR market could reach close to 24.6 million headsets.
Experiencing VR Is Cheaper
Other observations by the IDC include the fact that in virtual reality, headsets connected to the smartphone are popular and understandably so since smartphone-connected headsets are the cheapest way to experience virtual reality. No need for any high-end hardware here. And gaming is one of the most popular uses of VR – it’s why consumers want to experience virtual reality.
The same can’t be said of augmented reality though, which is why its current applications are focused on the enterprise and commercial markets. Google Glass was released for AR applications, and though its consumer sales have now been discontinued it is still used in the manufacturing sector on account of its hands free use. However, consumer use is limited because of the prohibitive costs involved in acquiring the hardware for a fulfilling AR experience.
This is one of the reasons why IDC believes that AR will be slightly overshadowed by VR and the latter will be driving volumes in the combined AR-VR market. But in the long term, IDC expects AR to be the greater growth play. This will probably happen with the AR hardware getting cheaper as the technology gets perfected further.
AAPL and FB Approach the Market Differently
AAPL and FB have their own areas of focus though. Facebook is pushing forward in virtual reality through Oculus while Apple, based on the excitement shown by Tim Cook towards AR, seems to want to focus its efforts on augmented reality. While the new iMac supports VR headsets by third-party providers, analysts believe Apple could soon be launching its own headset for the augmented reality experience rather than for the VR market.
In any case, the IDC estimates have really spread forth some optimism and there’s a lot of potential to dig into whether you choose to focus on virtual reality or augmented reality. Investors need to watch this space.
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