Apple Prioritizes Meta-Like AI Glasses Over Headset Revamp

Key Concepts:

• Smart Glasses: A new product category beyond smartphones, focusing on wearable technology.
• Augmented Reality (AR) and Virtual Reality (VR): Technologies that overlay digital information onto the real world (AR) or create immersive digital environments (VR).
• iPhone 17 Generation: Refers to the latest lineup of iPhones, including base models, Pro models, and the iPhone Air.
• Wait Times & Inventory: Metrics used to gauge the demand and supply of iPhone models.
• Battery Life: A critical factor influencing consumer adoption of mobile devices.
• China Market: A significant market for Apple products, influencing sales and demand.

Smart Glasses and Market Entry:

The discussion centers on the potential for Apple to enter the smart glasses market, a new category beyond their existing smartphone business. The analyst hasn't yet modeled the impact of Apple entering this market, emphasizing the need to first assess the product's details and potential market reception. Meta (formerly Facebook) is identified as having a "massive lead" in this space. The point is made that Apple's brand alone doesn't guarantee success; the product's features and execution are crucial. The modeling of shipments will depend on the specific models and their capabilities.

Importance of On-Device Models:

The conversation highlights the significance of "on-device models" for edge products like smart glasses. These models are crucial for processing data and enabling features directly on the device, reducing reliance on cloud connectivity. Apple needs to get the on-device models right before they can move on to some of those features.

iPhone 17 Generation Performance:

The discussion shifts to the performance of the iPhone 17 generation, based on the analyst's research on wait times and inventory. The base model and Pro models are performing well, indicating strong demand. However, the iPhone Air is underperforming expectations.

iPhone Air Challenges:

The iPhone Air is not gaining traction as anticipated. Two potential reasons are identified:

1. Battery Life: Concerns about battery life are negatively impacting consumer interest.
2. China Availability: The iPhone Air is currently unavailable in China, a major market, which is hindering its sales.

Conclusion:

The main takeaways are that Apple's potential entry into the smart glasses market is uncertain and dependent on product details and execution, despite Meta's current lead. On-device models are critical for the success of edge products. Within the iPhone 17 lineup, the base and Pro models are performing well, but the iPhone Air is facing challenges due to battery life concerns and limited availability in China.