Apple’s AR Headset Faces Revenue Challenges Amidst ChatGPT’s Popularity, Investors Shift Focus to AI Development

The growing popularity of ChatGPT has instilled fear in technology giants, prompting Google to recently introduce its own competitor, with other companies expected to follow suit. However, Apple is set to showcase its AR headset at the WWDC 2023 event tomorrow. Nonetheless, investors believe that artificial intelligence (AI) holds greater significance than a head-mounted wearable, according to a recent report.

Everything about the latest Apple’s AR Headset!

The report suggests that Apple’s AR headset may not significantly contribute to its revenue compared to AI in the next two years. The estimated shipment of only 100,000 units this year indicates that the prospects of the headset generating substantial profits for the company are slim. Ming-Chi Kuo, a prominent analyst from TF International Securities, expressed on Twitter that investors are more interested in Apple developing a competitor to ChatGPT rather than investing resources in a mixed-reality headset.

Kuo states that, in the coming years, Apple’s AR headset will not drive significant revenue for the company. However, Apple understands that its business does not rely solely on a single product. Even with the rumored price of $3,000 for the AR headset, the device may not gain enough popularity. Future iterations and more affordable models will likely be required to generate revenue and attract a larger customer base.

While some view the AR headset as a groundbreaking product, it is unlikely to generate substantial revenue for Apple, at least for now. Regarding the development of a ChatGPT competitor, the report does not mention how this Large Language Model (LLM) would generate profits for investors and the company itself. OpenAI, the company behind ChatGPT, reportedly incurred losses of $540 million in 2022 due to the substantial computing power required to operate the LLM.

In an interview, the CEO of OpenAI admitted that ChatGPT is not currently profitable and there are no foreseeable plans for it to become profitable. Kuo believes that Apple’s AR headset could have a positive impact on the 3D computer graphics industry and potentially benefit Meta’s business in the future. In summary, while the AR headset may not be the resounding success Apple anticipated, the market has significant growth potential, and we may witness a different reception in a few years.