Investors are reportedly more interested in Apple’s plan to launch a ChatGPT competitor than the tech giant’s upcoming AR headset, according to analysts. Apple is expected to showcase its AR headset at the WWDC 2023 event, but with an estimated shipment of only 100,000 units this year, investors believe the likelihood of the company profiting from the launch appears slim.
TF International Securities analyst, Ming-Chi Kuo, took to Twitter to state that for the next couple of years, Apple’s AR headset will not drive substantial revenue. Investors are instead hoping that Apple’s efforts to bring about a competitor to ChatGPT will result in significant gains for the company.
Despite OpenAI’s ChatGPT’s rise in popularity, its creators have not found a way to make money from it yet, according to reports. For this reason, there are no clear indications on how this Large Language Model (LLM) will make money for investors or the company.
While Apple’s AR headset may not be the home run they were hoping for, Kuo stated that it can help positively impact the 3D computer graphics industry. There is the possibility of the headset’s launch also contributing to the growth of Meta’s business in the future.
The rumored price of $3,000 for the AR headset makes it relatively inaccessible to the majority of consumers. Experts suggest that it will be up to future, more affordable models of the headset to drive revenue and attract a larger customer base.
Despite investor excitement around a ChatGPT competitor, it remains unclear how Apple plans to monetize the new technology. OpenAI, the builders of the original innovation, reportedly suffered significant losses in 2022 due to the massive computing power required to run LLM.
In conclusion, Apple’s mixed-reality headset may not generate substantial revenue for the company initially, but it has the potential to positively impact the 3D computer graphics industry. Also, the company’s rumored efforts to create a ChatGPT competitor could prove fruitful, though the financial benefits remain somewhat uncertain. Regardless, the technology industry should keep a close eye on Apple and OpenAI to see how their pursuits ultimately play out.
