We’ve gotten a glimpse at tomorrow’s technology. How it will change our lives and create trillions in the process
It was back in 2016 that Tim Cook, CEO of Apple, gave us a glimpse into the future …
There’s virtual reality and there’s augmented reality — both of these are incredibly interesting. But my own view is that augmented reality is the larger of the two, probably by far …
It’s something we’re doing a lot of things on behind that curtain …
Here in 2020, we’re not far away from that curtain being pulled back. And when that happens, it’s going to change our world … create enormous profits for select tech companies … and generate enormous riches for select tech investors.
In today’s Digest, let’s dig into what’s coming tomorrow. In short, it’s the beginning of the death of the smartphone … and the birth of something far, far, bigger.
***Augmented reality versus virtual reality
The average person isn’t 100% clear on the difference between augmented reality (AR) and virtual reality (VR), so let’s start here …
With VR, you’re basically entering another world. VR headsets completely take over your vision and submerge you into an artificial environment. The LCD or OLED panels inside a pair of VR goggles are refracted by the lenses to completely fill your field of vision with whatever is being displayed.
With augmented reality, your vision isn’t so much replaced by the glasses, but is rather enhanced by them.
AR glasses are transparent, allowing a person to see everything directly in front of them — in the real world. The difference is that AR-displays then overlay data into your field of vision in real time.
So, whereas VR cuts you off from the world, AR opens your world up.
***This is going to change, well, everything
For instance, navigation (head-up displays on car windshields) … task assistance (your AR device will guide you through how to repair, say, a plumbing problem by yourself as you’re under your sink, looking at your own pipes) … fashion (smart mirror apps will let you try on clothes, or makeup, or a new hair-style before you ever open your wallet and commit to it) … home improvements (you’ll use AR devices to see how “digital furniture” would fit and look in your room) …
This is just the beginning. There are countless other applications from health, to education, to travel, you name it …
Now, what’s coming in the nearer-term is augmented reality devices that work with our phones. But further down the road, these devices will replace our phones.
One day, our kids will laugh at how us “old fogeys” had our heads down, buried in a phone-screen all day long.
***What’s powering all of this? Why now?
Tech companies have been dabbling with augmented reality for years with little real success, and practically zero applications that anyone actually wanted to use.
So, what’s different about today?
Well, in short, it’s something our analysts have been tracking and writing about for a long time now …
5G.
For augmented reality devices to work in real-time, carrying massive quantities of data without interruption, it requires blazing fast, robust wireless connections.
We haven’t had this until the recent rollout of 5G wireless connectivity.
The 4G network clocks in at around 100 megabits per second, which is extremely fast compared to 3G. But with 5G, that number jumps to 10,000 megabits per second — or 100 times faster. It’s this speed that will support the proliferation of AR breakthroughs.
The bottom line is that augmented reality plus 5G speed is going to completely transform how we relate to our world and each other.
But first, it’s going to change how we relate to our smartphones.
***The first step toward augmented reality is already hidden in your iPhone
Your iPhone has a secret …
It already contains augmented reality software.
That’s not all …
This software is pointing toward another product you’ll be seeing soon … one that Apple has been very tight-lipped about until recently … one that’s going to help usher in this new age of augmented reality impacting our daily lives.
Apple Glasses.
From Tom’s Guide:
The piece of evidence that points to the Apple Glasses existence is the presence of an entire augmented reality framework — codenamed Project StarBoard — in the final version of iOS 13. It is still there and it mentions the device — apparently codenamed Garta — multiple times in code and text documents.
(Image credit: idropnews/Martin Hajek)
Reports are mixed in suggesting when we’ll see Apple Glasses in stores.
Some speculate it could be as early as this fall. Other suggest it will be 2022. Hopefully, we’ll learn more at the 2020 Worldwide Developers Conference next month.
***Regardless of when they arrive, Apple Glasses are likely to be a gamechanger
Right now, Microsoft has its own augmented reality headset, something called Hololens 2. Here’s a photo:
(Image: Future)
But there are two issues with it when it comes to consumer adoption.
One, it’s expensive. Hololens 2 has a price tag of about $3,500.
Two, most people probably wouldn’t want to wear the device in real life.
As you can see above, Hololens 2 look like a pair of ski googles. It’s a bit big and clunky.
The reason for this is because the Hololens 2 has all the electronics needed to run the AR experience built into the headset — a dedicated central processing unit, graphics processor, memory, storage, high resolution image projectors, Wi-Fi, USB-C port, cameras and some batteries.
Now, here’s how Apple Glasses will be different, and in being different, will accelerate our adoption of AR …
***Apple will be offloading the data processing to an accompanying iPhone or iWatch
This means it will have significantly fewer parts and complexity than the Hololens 2.
And that leads to two distinguishing characteristics of Apple’s AR product: less expensive and a sleeker design.
Estimates are that Apple Glasses will start around $799. Not exactly cheap, but far more affordable than $3,500.
And as for their look, well, you be the judge …
(Image credit: idropnews/Martin Hajek)
Because the glasses don’t have to include all the technological components, they will appear more like designer sunglasses with thick frames than bulky goggles.
And this ties us back to how 5G plays into all of this …
For now, you might think of Apple Glasses as an accessory to the iPhone (or iPad, or other Apple product). For them to work, they have to connect to an Apple device that contains the computing power.
The Glasses will capture the data, send to the iPhone, then the iPhone processes the video and sends back the 3D imagery at a very high frame per second rate (a minimum of 60Hz, with 120Hz being optimal). Obviously, for this to work, it requires huge bandwidth … which is what 5G offers.
But with this fast 5G connection, users will, in effect, synchronize their iPhone and Glasses to display things including texts, emails, maps, games, and 3rd-party apps over the user’s field of vision.
***This will mark the beginning of the end of the smartphone as we know it
Back to Apple CEO, Tim Cook from 2017:
The smartphone is for everyone, we don’t have to think the iPhone is about a certain demographic, or country or vertical market: it’s for everyone.
I think AR is that big, it’s huge.
What Cook didn’t say was that AR will likely replace the smartphone in about a decade.
According to The Information, which detailed a leaked Apple presentation on Apple Glass, augmented reality glasses will ultimately replace smartphones and make the handset you use each day obsolete.
From Inc.:
… this is the first time that something truly concrete from inside Apple’s notoriously secretive headquarters has leaked about the company’s plans for augmented reality. And perhaps most importantly, the leak points to a life beyond iPhones …
… the leak suggests Apple is also eyeing the future of its hardware business. And it’s firmly rooted in AR.
***The investment implications are enormous
This is not an upgrade of an existing product. These augmented reality devices will be brand-new … which means new revenues … new profits… new ecosystems … new accessories … new surges in stock prices.
Consider the trillions of dollars of wealth that will flow toward the companies behind this technology.
There’s Apple, obviously (and the other retail-sellers like Microsoft and the slew of competitors that will follow). But then, there are the component makers — the companies that make the lenses, the microprocessors, the apps within the ecosystem, the 3-D sensing solutions, and far more.
Fortunes will be made as our world adopts these technologies, funneling oceans of wealth into the coffers of select tech companies.
You can expect detailed ways to play this opportunity from our various InvestorPlace analysts. And we’ll be bringing you more ideas here in the Digest.
For now, it’s time to get excited … and time to get prepared.
Have a good evening,
Jeff Remsburg
