Why Apple's Rumored Partnership Third Party AR Glasses Makes Sense

Rumors of Apple's jump into augmented reality glasses keep cropping up, and here's the latest (relatively credible) one:

Apple's augmented reality headset will enter mass production as soon as the fourth quarter of this year in time for an early 2020 launch, according to a new report out today from Apple analyst Ming-Chi Kuo and seen by MacRumors. In his latest research note with TF International Securities, the analyst says Apple will cooperate with third-party brands to launch its first head-mounted AR product in 2020, with Changying Precision tipped to be the main chassis supplier.

I tend to believe this rumor more than most, because it answers the most obvious question: Why would Apple spend billions to manufacture a new hardware device with no proven mass market, but a track history of notorious failure (cough Google cough Glass)?

Answer:

If a third-party makes it for Apple, and it fails to sell, Apple takes a minimal hit to its brand and bottom line. And if it somehow succeeds, Apple can enjoy all the rewards.

Because from what I infer, all Apple is doing is helping this third-party brand(s) make these glasses compatible with the iPhone's augmented reality software. (And probably spending minimal resources of its own, in the process.) In exchange, Apple might promote it at their next big 2020 device show, perhaps feature it on their website and sell it in their physical stores as "official iOS-compatible" AR glasses. (But if I were them, perhaps not do much more than that.)

That way, if these glasses fail to sell, most of the blame falls on the third-party brand(s), not Apple. In fact, Apple can then play the wise kingmaker, saying ruefully, "We partnered with [third-party brand] to test our customers' interest in AR among our customers, but alas, it's not yet strong enough to justify more resources on our part."

That's way more preferable to Apple than taking an enormous risk on manufacturing their own first-party AR glasses, with disastrous consequences for the company if sales were mediocre.

After all, if a third-party keyboard for iPhone fails to sell -- even if it's sold in Apple Stores -- you don't blame Apple for that, right?

Comments

[TonyVT Skarredghost]

But what if it succeeds? Apple doesn't take all the merits...