Apple's Anticipated AR/VR HeadSet Will Need An iPhone Or Mac For Full-Functionality: Report

Apple Inc.’s AAPL highly-anticipated AR/VR headset will need to be wirelessly tethered to an iPhone or another Apple device like a Macbook for processor-heavy tasks, according to a report by the Information (via The Verge).

What Happened: Apple is working on a custom chip (SoC) for the headset that is not as powerful as the tech giant’s other processors because it will not have a neural engine for AI and machine learning capability, the report noted.

This indicates the headset is designed to wirelessly communicate with another Apple device that will handle most of the powerful computing.

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The new chip is designed to optimize for wireless data transmission, compressing and decompressing video, and power efficiency, as per the report.  However, it will not be ready for mass production for at least a year.

The AR/VR headset will reportedly have its own CPU and GPU, suggesting it could work in a basic stand-alone mode with limited functionality.

Why It Matters: Apple has quietly been working on pushing into the virtual reality and augmented reality space for years.

It was reported in March that Apple’s AR/VR headset could be launched in 2022, followed by augmented reality glasses by 2025, as per analyst Ming-Chi Kuo.

The AR/VR headset is expected to compete against Facebook Inc.’s FB Oculus and Sony Group Corp.’s SONY PlayStation VR, among others.

Price Action: Apple shares closed almost 0.8% higher in Thursday’s regular trading session at $153.65, but edged down less than 0.1% in the after-hours session to $153.59.

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