Apple fans expect a mixed reality headset reveal at WWDC 2023

Apple's Worldwide Developers Conference kicks on June 5. Phillip Shoemaker, Identity.com Executive Director and Founding Director of the Apple App Store previews what's in store and breaks down why Apple may want to release a mixed reality headset.

Video Transcript

BRAD SMITH: Also, Apple's 2023 Worldwide Developers Conference kicks off on Monday. Analysts and tech fans have high expectations for the event. Joining us now to give some key insights is a former Apple executive. He was the founding director of the Apple App Store, and now advises developers who want to get their apps into the App Store. We've got Philip Shoemaker, who is the identity.com executive director. Philip, great to have you here with us today.

First and foremost, when you think about the WWDC event and how critical it has become over the years, largely because of the role that you played in getting the Apple App Store really kind of off to the races, where does Apple need to continue to move forward with its relationship with those developers? What could they possibly announce to continue to invigorate excitement among that core base?

PHILLIP SHOEMAKER: Well, it seems like all the excitement right now, at least that Apple is around this virtual reality, augmented reality headset. And that gives Apple yet another platform on which to sell apps, which helps drive business. That's the big thing this year.

JULIE HYMAN: What's happening in the developer community? Given that they haven't actually introduced the product yet, do developers sort of predevelop in anticipation of that kind of product, or do they have to wait till they have the actual specs?

PHILLIP SHOEMAKER: Many of us have to wait. There are always a select anointed few developers that Apple gives hardware to and allows them to start experimenting. But most of us have to sit on the sidelines and wait for the hardware to actually get released, which is typically at WWDC. And which is a super exciting time for developers in general on this platform because you have no idea what they're ultimately going to release because they have such a good secret engine inside.

RACHELLE AKUFFO: And Philip, we know that Meta did try and steal some of Apple's thunder by releasing its Quest 3. And you also, of course, have Sony's PS VR headset. But when you think of Apple and the ecosystem that this would be built into, talk about the competitive edge here. And most importantly, who is the ideal user for this?

PHILLIP SHOEMAKER: Yeah. So many of the headsets right now are cumbersome, they're large, they're difficult to use. And once you get in to start playing with them, they're not all that compelling, right? I play with all of those headsets that you mentioned. And I'm excited by seeing what Apple has because they're always going to do something that's a bit different, that's more customer-focused. Less developer-focused, more customer-focused to make it easier, and something more complete for somebody to be able to use.

So that's the real exciting thing is Apple released something that said, "code new worlds." And so developers are chomping at the bit to figure out exactly what that means. But first and foremost, what Apple focus is on other than the fit and finish of the device is how to bring amazing new technologies to people in a way that people haven't seen yet. And that's what's really exciting is the user experience that we're going to see from the Reality Pro headset if that's what it's ultimately called.

BRAD SMITH: Phillip, I've played Light Saber DDR Max on these headsets before. And that was the best experience. I'm just trying to figure out why everybody is trying to push a headset on me. Why do why do we need the headset from the tech company's perspective?

PHILLIP SHOEMAKER: Right. I hear you. And it's an interesting time because honestly, metaverse and virtual reality is kind of passe right now, right? Didn't we forget about it when artificial intelligence, generative AI came around. So I think some exciting things that are going to be is imagine these devices being used with generative AI as well.

And I think that's one of the things Apple is going to be doing this time is showing us that they've got to focus on AI, it's going to be embedded in the headset. And that's why you're going to want to wear those headsets is so you can have some real-time feedback and real-time interaction with an AI bot rather than doing it through command line typing on your machine.

JULIE HYMAN: Well, that's a really good point Philip because when Apple reported its earnings, there were some questions about why it wasn't being more generative AI-forward, if you will, like so many other companies have been. But what you're describing, I guess I'm having a hard time wrapping my head around it. Like what's the opportunity here for Apple? How is that going to work if I'm wearing this thing and interacting? What does it do for me, I guess is the question?

PHILLIP SHOEMAKER: Yeah. So virtual reality is going to be one of those things that embeds you in a different environment. Augmented reality is going to allow you to see your external world with things overlaid on top of it. So imagine if you were looking around the mountains right outside your house and trying to figure out what's the name of each one. It will overlay the names of the mountains all around you, it'll overlay the names of vehicles, things like that.

And so for me, the AI, the generative AI is just going to have a real-time interactive feedback of what you're seeing, what you're hearing, and what you're doing, and be able to help guide you, if you will. That's to me the real interesting aspect of these future augmented reality devices help me deal better with my reality right now.

RACHELLE AKUFFO: And Philip, when you look at the price tag there, $3,000. I mean, already trying to afford a Quest is a bit of a stretch for people. When you have that price tag, I mean, I feel like there should be some expectations that come with this in terms of perhaps some of the hardware or other software that would really be built into to support this and make it something that people will use more widely. What do you think about this price tag here?

PHILLIP SHOEMAKER: Oh, the price tag is horrendous. It's going to be a tough pill to swallow, and they're probably not going to sell as many of those as they do iPhones every year. But it's a beginning, right? And especially if you have to wear a belt or something in your back pocket for the battery pack, which is what we're hearing. It's a rough, rough set.

You want virtual reality headset to be like glasses. You don't want them to be any more cumbersome than that. But look, we're about five years away from that. So I am worried about the price tag. That is way steep. That's three times the price of an iPhone. It's a tough pill to swallow.

JULIE HYMAN: Yeah. And probably the telecom companies are not going to spring for it. At least not yet like they do for your iPhone these days, at least more so than they used to. Philip, thank you so much. Really helpful context here. Philip Shoemaker's identity.com's executive director and founding director of the Apple App Store. We'll see what we hear from Apple. Thank you.