Thursday, 23 November 2023 Reading time : 3 minutes

The move into virtual reality is hardly new: companies have been working on headsets that allow users to immerse themselves in another world for more than 25 years. However, a mass market breakthrough has yet to materialise. This is set to change with Apple's entry into the market: the US tech giant plans to launch its Vision Pro headset in spring 2024. This opens up opportunities for companies that supply components for the hardware of reality technologies or provide content.

But what are reality technologies? We can distinguish between three categories:

• Augmented reality (AR): digital elements are added to a real environment, for example by using a smartphone camera.
• Virtual reality (VR): the real environment is replaced by a simulated one.
• Mixed reality (MR): this technology blurs the lines between the real and virtual world. Apple is positioning the Vision Pro in this segment.

Targeting a high-growth market

Apple CEO Tim Cook unveiled a prototype of the Vision Pro in June 2023. But the initial euphoria has since cooled. In addition to reports of production problems, the planned launch price of USD 3,499 seems high. In addition, the device will initially only be available in the US, while European customers will probably have to wait until 2025. However, the temporary calm surrounding the new product category could be a good entry point for investors. Part of Apple's success story is to launch sophisticated, easy-to-use devices that turn seemingly niche products into mainstream items, as the tech giant did most recently with the Apple Watch in 2014. This success story could continue with the Vision Pro.

Apple is entering a fast-growing industry with its headset: according to the data provider Statista, the global market for virtual and augmented reality (VR, AR) will more than triple by 2026, rising from just under 30 billion US dollars in 2022 to over 100 billion US dollars.

How investors can participate

The basket «Virtual & Augmented Reality» contains companies that are considered to be potential suppliers for Apple's headset. These include semiconductor manufacturers and producers of lens and camera modules. 

Although Apple is trying to diversify its supply chain, these companies are mainly based in Taiwan, South Korea and China. The basket also includes companies that could develop content for the headset. One example is Walt Disney: the US company plans to offer movies and shows from its Disney+ streaming platform on the Vision Pro.

Tracker Certificate on «Virtual & Augmented Reality» Basket