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Apple WWDC preview: Will there be a mixed reality headset?

Apple's Worldwide Developers Conference (WWDC) kicks off on Monday, June 5. Many are expecting the consumer tech giant to release a mixed reality headset that could compete against Meta's Quest VR devices. Yahoo Finance Tech Editor Dan Howley previews the big event.

Video transcript

- Meanwhile, investors believe Apple will unveil its new mixed reality headset next week at the Worldwide Developers Conference in Cupertino. But will this new product have a greater impact than its competitors like Meta's Quest. Here with that story is Yahoo Finance's Dan Howley. Dan, what can we expect?

DAN HOWLEY: That's right, Dana. We're expecting a headset from Apple. It would be the first major product launch since perhaps the Apple Watch. Well, you know, I mean, you can throw in there I guess the AirPods. But this is going to be a completely new platform, new software. According to reports, it will have a very, very high end display, something that we haven't seen from other competitors.

Micro LEDs, that's really like the top, top, top of the line you can get as far as display technology, super brightness. So that should be quite impressive. We have Dan Ives, Wedbush analyst basically pointing out that there will be numerous apps for it. It should launch at a price range of $3,000. So yikes on that. I'm not going to be picking one up. And the processing power should come from an M2 chip.

Now, I think what Apple's going to have to lay out is why you want a AR/VR headset. Apple's been able to come in to other categories before that have already been defined and essentially redefine them and take over them. It did it with the smartwatch, it did it with Tru wireless earbuds. It did it with the tablet. It did it with the smartphone.

Can it do it again with a mixed reality headset? And that's the big question I think a lot of people have. Most consumers don't have mixed reality headsets or virtual reality headsets at this point. Those that do, there have been conflicting reports on whether or not they actually stick around to use them or if they just collect dust in their closet after going through the first kind of honeymoon period with them.

And then they just kind of say, well, I got my big TV. Why do I need this? So that's going to be something that Apple is going to have to overcome. But if it's any company that can do it, I mean, you've got to imagine they can.

- Yeah, I was going to say if anyone can do it out there, if anyone can get this to go mainstream, it will be Apple. So we'll see whether or not we do get that next week. And then, of course, what the consumer reaction is to that. But Dan, when it comes to the talk of tech this week, it's been all about Nvidia, Nvidia joining the trillion dollar club. But Apple has also hit another trillion dollar milestone for itself. Tell us more there.

DAN HOWLEY: That's right. There's a report from the Analysis Group that says Apple has facilitated or experienced in commerce from its App Store $1.1 trillion in 2022 alone. And that's I believe a 29% jump from last year. This is essentially something that's unheard of. Now, Apple putting this out-- excuse me-- Analysis Group putting this out. Apple funded the study, so just to caveat that.

But part of the discussion that is had in this report is that 90% of that money didn't go to Apple. It was through sales outside of apps or rather in apps, outside of the App Store, websites, things along those lines. So not necessarily going to Apple's coffers. And I think this comes at a time when Apple is facing that scrutiny from regulators over its App Store practices. Not to mention Google, which has similar practices.

The Digital Markets Act in the EU is going to force Apple to open up its platform to third party app stores as well as third party payment options. So we could see changes coming as far as the amount that is facilitated or the amount of Commerce that runs through the App Store. But we'll just have to wait and see when we start to get those new rollouts of those app stores. But truly a tremendous number here, $1.1 trillion.

- It's pretty crazy, $1.1 trillion in just a year. Dan Howley, great stuff. Thanks.