The Sneaky Genius of Apple’s AirPods
Bloomberg Businessweek US|September 26, 2022
By itself, Tim Cook’s headphones division would be one of America’s largest companies. Here’s how he built it
Max Chafkin
The Sneaky Genius of Apple’s AirPods

Sometime next year, Tim Cook will appear before the Apple Inc. faithful and unveil the company’s next major computing platform, a headset that mixes virtual reality and augmented reality. Its code name is N301, though trademark filings suggest its real name may be the Apple Reality Pro. Those filings, and the early word, hint that the device’s components will probably blow away the VR headsets made by Facebook, Sony, and HTC. Apple’s version of VR seems likely to look better, run faster, and feature more immersive graphics. It’s also almost guaranteed to be a letdown, at least at first.

Apple has been working on its headset for seven years, and the project now has about 2,000 employees, including the guy who was previously running VR development for NASA. Today’s VR market, however, is still minuscule by Apple standards. Facebook, which renamed itself Meta Platforms Inc. as part of an expression of its commitment to the metaverse, as VR is sometimes described, accounted for almost 80% of headsets sold last year, according to market research firm IDC. The entirety of that business represents a little more than 0.5% of Apple’s overall revenue, which sounds less like a fundamental strategic shift and more like what the company makes selling fancy iPhone cases. 

Ten years after the failure of Google Glass, Apple’s headset will have to prove itself to become a mainstream hit. That makes the Reality Pro a tempting target for anybody who wants to opine that the company has lost its way. We know this because similar declarations have met pretty much every move Cook has made in the 11 years since Steve Jobs died.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BLOOMBERG BUSINESSWEEK USView all
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 mins  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 mins  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 mins  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 mins  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ mins  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ mins  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 mins  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 mins  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 mins  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 mins  |
March 20 - 27, 2023